Home
Buying Guide
IQ
Written by Remar Sutton
Educators’ Independent Consumer Spokesperson
A Home!
You already know that buying one is a huge decision, whether it’s your first purchase or your
tenth. And it is a pretty exciting decision, too, isn’t it?
Well, here’s the catch; the decision to buy is a lot easier than the actual process of buying. If you
don’t know what you’re doing — and if you don’t stay in control of the process, even if you’re
using the best real estate agent — your money and your sanity could be at risk.
And here’s the problem; you won’t know you’ve wasted your money, or made the wrong decisions until after you’ve bought the place! Loss of sanity can follow shortly thereafter.
Educators doesn’t want you to be stressed like that! That’s why we’ve developed this guide just
for our members. Spend some time here, and you’ll be a very smart cookie when it comes to
finding the right home.
Here’s why the guide works: We’re not trying to sell you something; we’re trying to educate
you, raise that I.Q., tell you answers some people don’t want you to know and get you to think
about things you might not think about.
Everybody is trying to sell you something when it comes to a home. We give you unbiased
information that makes you smart. Isn’t that what you need?
Remar Sutton
The IQ Home Buying Guide is prepared by Remar Sutton & Associates and licensed to Educators Credit Union.
Copyright 2009. All rights reserved.
Contents
The Planning Process.......................................................................................... 1
Shopping for a Home........................................................................................... 7
Purchasing a Home........................................................................................... 13
Relocating Resources........................................................................................ 19
Moving into Your New Home............................................................................ 20
Moving Checklist............................................................................................... 21
Home Maintenance Tips................................................................................... 22
1
The
Planning Process
Smart home buyers know that taking time to plan and do some
“homework” before you begin shopping seriously for a home can
save time, prevent potential headaches and help you get the most
home and the best value for your money. Laying a foundation for
what kind of home you need and want, where to find it and how
much you can afford to pay for it will get you ready to shop for a
home and negotiate its purchase.
Buy or Rent?
How do you know if owning a home makes the best financial
and personal sense for you and your family? Is it the right time
for you to buy a home? Determining whether you want to own
or rent a home depends on your personal preferences and your
financial situation. Begin by asking yourself these questions:
 D
o I/we have a steady, reliable income? If you are thinking of changing jobs or if your job is iffy, now is not the time to buy a home.
 H
ow much total debt do I/we have (credit cards, car loans, students
loans, etc.)? Is it manageable? If you are thinking of buying a car, if
you can, put it off until you have bought your home.
 C
an I/we afford to pay a mortgage and other expenses, such
as insurance and property taxes, in addition to our current
monthly expenditures? Note that there may be other monthly
expenses, such as water/sewer, garbage collection, gas/electric
and pest control, that you might not pay for currently.
Cons of Ownership
 I t may cost more to own than to rent the same size dwelling.
 P
roperty values can go down as well as up.
 Y
ou have to maintain the home and pay any maintenance and
repair costs.
 M
oving to another home can be dependent on selling the
current home.
Types of Homes
Single-family Detached
Single-family detached homes come in a large range of sizes
and prices from the 800 sq. ft. mini to the multi-million dollar
mansion. They offer the most privacy, but can represent the most
work for the homeowner. Some typical maintenance tasks may
include mowing grass, raking leaves, maintaining gardens and
landscape, shoveling snow, painting, cleaning out roof gutters, and
much more depending on the homes age, geographical location
and property/lot size and features.
Condominium (Condo)
 D
o I/we want the responsibilities (and lifestyle changes) that
go with being a homeowner?
The term condominium actually refers to the form of ownership not
the type of structure. Condominiums can take almost any form: for
example, a high-rise building or an old mansion divided into apartments. Units in some cases may be free-standing (i.e., they don’t have
shared walls) or can be townhomes. When you buy a condominium,
you aren’t just buying your unit and a share of the common areas but
you are “buying into” the community. Condo living may not be for
you if you don’t want to participate in the community. Before buying, it is very important that you review the master deed (or enabling
declaration), bylaws and house rules at a minimum.
If you answered yes to these questions, then the time is probably
right for home ownership.
Co-operative
 Do I/we have money saved for a down payment?
 Do I/we have money saved for closing costs?
 Do I/we plan to stay in the home for several years?
Pros of Ownership
 Y
ou don’t have the prohibitions of a landlord. For example, you
can put nails in the wall to hang pictures or have a pet.
 Y
our home is not just shelter, it’s an investment. As property
values go up, your equity in the home increases.
 Th
e interest you pay on the mortgage and your real estate/
property taxes can be deducted from your federal income tax.
2
With a co-op, you are buying a share in a corporation, not a
piece of property. Financing for a co-op is not obtained through a
traditional mortgage. Financing is usually in the form of a “share
loan.” Information about obtaining a share loan for a particular
co-op should be available in the co-op’s office.
Manufactured
Manufactured homes have come a long way from the simple,
boxy single-wide mobile home. According to the Manufactured
Housing Institute, construction costs per square foot for a new
1
manufactured home average anywhere from 10 to 35 percent less
than a comparable site-built home, excluding the cost of the land.
Newer manufactured homes are typically built to more stringent
construction and safety standards than in the old days, but many
types may still be more prone to damage during severe weather.
They are available in a variety of designs, floor plans and amenities.
A home may be placed on land you own or land you lease, but many
communities and counties have precise, often broad restrictions on
where and what type of manufactured housing is permissible.
Existing
An existing home, particularly an older one, may be in an
established neighborhood with varied architectural styles, and a
broad range of colors and building material. Homeowners may
have added special features (which may be good or bad). The right
older home may offer a number of benefits. Among the potential
drawbacks of some existing homes are the following: Certain styles
and sizes of older homes may have smaller rooms, including the
baths and kitchen, and may lack storage space. Existing homes
may require some renovation or remodeling to fit your needs,
may require more ongoing maintenance and may require more
immediate major repairs, such as replacing the roof, furnace or hot
water heater.
Newly Constructed
You will find the latest kitchen and bath designs and floor plans in
newly constructed homes. All of the homes in a new subdivision
may look very similar in architecture, color and material. Room
sizes may be larger than an existing home with more stor-age
space, though this is not always the case. Many new homes are
built to higher energy-efficient standards than older homes and are
potentially fitted with more energy efficient appliances. The housing
development may also offer certain recreational facilities or other
amenities. You should never assume, however, that new construction
necessarily means a well-built home or a home without problems;
smart buyers always have any home independently inspected.
Build Your Own
Building a home can provide you with more choices but can also
provide more stress. Whether you work with an architect and independent contractor or with a developer, you may have many options and choices or only a few. For example, a developer may offer
the choice of many upgrades of their standard features — such as
flooring, cabinets or paint — but very little choice in changing the
floor plan. A custom builder may give you more flexibility in floor
plans and every part of your home. Depending on the developer or
contractor, you may also be able to keep a close eye on progress and
quality of the work during construction (good) or the builder may
actively discourage homeowner involvement (red flag).
2
Location, Location, Location
You think you just found your dream home and it’s also a bargain!
Whoa! Why is it a bargain? Is it the neighborhood? The schools?
Or the house itself? There are many factors that can affect the value
of a home and also determine if the home is right for you.
The neighborhood, the area surrounding the neighborhood, the
neighborhood schools and the services provided can affect the
value of a home. Here are some tips on how to find the best house
that you can afford:
Drive around the area and get a feel for the different neighborhoods.
Keep notes about what you like and don’t like about each area. Do
you want a short commute to work? Kids to walk to school? Active
homeowners association? Convenient public transportation? Make
a list of what is important to you in a neighborhood. Specify what
criteria are must haves (needs) and which would be nice to have
(wants). Use the Neighborhood Needs vs. Wants worksheet below as
a starting point.
Must
Have
Nice to
Have
Comments/
Notes
Short Commute to Work
Convenient to
Public Transportation
Convenient to Major Highways
Convenient to Stores
Walking Distance to Schools
Walking Distance to
Parks/Recreation Area
Convenient to Place of Worship
Convenient to Medical Facilities
New Development
Established Neighborhood
Urban
Suburban
Rural
Homeowners Association
Low Vehicle Traffic
Sidewalks
Zoning maps, land use plans and comprehensive plans are just
some of the documents that can help you check out an area.
These types of documents can indicate what the plans are for development and growth in a particular area or neighborhood. If
an area is just beginning to be developed, a zoning map can indicate where the commercial and residential areas will be located.
Use the following websites to checkout the communities in
Educators seven county service area:
important are those items and features that you don’t want — these
represent reasons to reject a particular home.
 C
ity of Burlington: www.burlington-wi.gov/Government/
planning_and_zoning
You might start your list by thinking what you liked and disliked
about each of the places you have lived to date. Also think about other
homes you’ve visited. Think about your current situation too. The
Home Needs vs. Wants worksheet below will help you get started.
 C
ity of Elkhorn: www.cityofelkhorn.org/CityServices/
CommunityDevelopment/PlanningAndLandUse
Need
 City of Kenosha: www.kenosha.org/departments/development
 City of Milwaukee: www.mkedcd.org/build
 C
ity of New Berlin: www.newberlin.org/display/router.
asp?docid=130
 City of Racine: www.cityofracine.org/Depts/development
 City
of Waukesha: www.ci.waukesha.wi.us/Community_
Development
For information on other communities in the area, check out
these county pages:
 Kenosha County: www.co.kenosha.wi.us
 Milwaukee County: www.milwaukeecounty.org
 Ozaukee County: www.co.ozaukee.wi.us
 Racine County: www.racineco.com
 Walworth County: www.co.walworth.wi.us
 Washington County: www.co.washington.wi.us
 Waukesha County: www.waukeshacounty.gov
For other areas of Wisconsin, visit the Wisconsin Counties, www.
wisconsin.gov/state/core/wisconsin_counties, and Wisconsin
Cities, Towns and Villages, www.wisconsin.gov/state/core/
wisconsin_cities_towns_and_villages, pages which provide links
to county and city, town and village governments.
The quality of the schools in an area can impact the value of your
home. So even if you don’t have children, you should look at them.
The Wisconsin Department of Public Instruction, dpi.wi.gov, site
is a good place to start. On the site you can find data about school
performance and links to schools and school districts.
What Do You Desire in a Home?
Before you start looking for a home, you need to decide what it is
you are looking for. You need to decide what items and features your
home must have. You also have to decide which ones would be nice
to have but aren’t absolutely necessary. Another list that is just as
Want
Don't
Want
Comments/
Notes
New
Older
Single Family
Condo
Co-op
Manufactured
Single Story
Multi Story
Number of Bedrooms
Number of Bathrooms
Master Bedroom/Bath
Living Room
Family/Great Room
Dining Room
Eat-in Kitchen
Den/Study/Office
Recreation/Exercise Room
Yard — Small/Large
Fenced Yard
Finished Basement
Attic/Storage Space
Laundry/Mud Room
Central Air Conditioning
Fireplace
Hard Wood Floors
Garage
Deck/Patio
Screened Porch
The composition of your household will also make a difference
in how you look at your wants and needs. Do you have small
children? Teenagers? No children? Plan to have children? Older
family member living with you?
If you are buying the home with a spouse or partner, it is very
important that each of you make a list and then discuss together
3
your individual “wants” and “don’ts" — particularly the don’ts.
Many a home purchase has been derailed by an objection coming
out of the blue. Compromise will be a major component of a
successful home purchase.
Driving through the area and visiting open houses and model
homes can help you narrow your list.
Your needs and wants will also be driven by what you can afford. The
next section helps you determine what you can afford to spend.
How Much Home Can You Afford?
Many lenders will talk of affordability in terms of a percentage of your
gross monthly income (GMI) or X times your annual income. For example, you may have read that conventional loans typically allow you
to spend 28 to 36 percent of your GMI. Or maybe some other source
said, “about 2.5 times your annual income.” But if you are going to be
a smart shopper, you need to get more specific about how your current
income, debt and expenses affect your home-buying power.
To determine how much you can afford to spend on a home, you
have to consider your entire financial situation. Because so many
lenders talk about mortgage affordability in terms of a percentage of
your gross monthly income, we’re going to talk about that also. But
always remember this very important point: a monthly mortgage
payment does not buy you a house or condo; it buys you a lump
sum of cash — your loan — and usually includes money for the total
monthly PITI (principal, interest, taxes and insurance). So to determine your price range of affordable home prices, get out your financial records, your calculator and your pencil. Use the Income and
Expenses worksheet below to help you work through all the figures.
Monthly Income
Paycheck
Paycheck
Tips/Commission/Other
Interest/Dividends
Other Income
Total Gross Monthly Income (GMI)
Allowable Percentage of Income for Housing Expense
28% of GMI (0.28 x GMI) =
36% of GMI (0.36 x GMI) =
Current Monthly Expenses
Auto Loan
Auto Loan
Student Loan
Other Loan
Other Loan
Credit Card Payment
Credit Card Payment
Total Monthly Debt
Amount Available for Total PITI Mortgage Monthly Expense
Allowable Percentage of Income for Housing Expense - Total Monthly Debt =
(28% of GMI)
=
(36% of GMI)
=
Use one of our mortgage calculators to see the price range of affordable mortgages
(http://ecu.mortgagewebcenter.com/ResourceCenter/Calculators/Default.asp?PID=76) or
(http://www.ecu.com/financialCalculators/home).
For the most realistic figures, double check this estimate using your
actual monthly expenses.
Complete Monthly Expenses
Taxes
Food/Groceries
Utilities (electricity, gas, water)
Phone/Cell Phone
TV/Cable/Internet
Auto Loan
Auto Loan
Auto Insurance
Auto Maintenance (gas, repairs)
Bus/Taxi/Toll/Parking
Student Loan
Other Loan
Other Loan
Credit Card Payment
Credit Card Payment
Life Insurance
Health Insurance
Medical Expenses (misc.)
Child Care (daily/occasional)
Legal-Child Support/Alimony
Education
Clothing
Recreation/Entertainment
Dining Out
Vacations
Donations
Retirement
Misc. (cleaning, toiletries)
Complete Monthly Debt
Total Gross Monthly Income (GMI) - Complete Monthly Debt =
=
42
How does the result — your income after these expenses — compare
to the figures in “Amount Available for Total PITI Mortgage
payment”? This figure should be greater than your 28% figure and
ideally greater than the 36% figure. If it is smaller than the 28%
then you will need to lower the amount you have available for
mortgage expenses to at least this figure, or to an even lower figure
if you want to have any disposable income.
Before you begin, remember that your monthly housing expenses will
consist of the PITI and possibly private mortgage insurance (PMI),
plus utilities and maintenance.
Wait! What are all those things?
PITI is your monthly mortgage payment. Its components are:
 P
rincipal — this portion reduces the remaining balance of
the mortgage.
 Interest — this is the borrowing fee.
 T
axes — this portion goes into an escrow account to pay the
annual property taxes.
 Insurance — this
portion goes into an escrow account to pay the
hazard insurance (also called homeowner’s insurance). Not all
lenders escrow your hazard insurance.
PMI, private mortgage insurance, is usually required by lenders
when your down payment is less than 20%. This protects the
lender against loss if you don’t make your mortgage payments. If
PMI is required, then it is also part of your mortgage payment and
also goes into the escrow account.
programs or 100 percent financing options. Other loans range
from 3 percent to 20 percent of the purchase price. The larger
the down payment, the smaller the loan. Thus a lower monthly
mortgage payment and less interest paid over the life of the loan.
Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is the most accurate way to
find out what price range of homes will fit your budget. For more
information about pre-approval with Educators, read Chapter 3 of
the IQ Mortgage Guide.
Is There a “Best Time” to Buy?
There’s no simple answer to this question. The “best time” to buy a
home is usually when fewer buyers are looking. There are two terms
that you should be familiar with: buyer’s market and seller’s market.
A buyer’s market exists when there are more properties for sale than
there are buyers. In a buyer’s market, sellers may be more flexible and
willing to work with a buyer. A buyer has more time to check out a
property and make decisions.
A seller’s market exists when there are more buyers than properties
for sale. In a seller’s market you must be ready to act quickly.
During a seller’s market, sellers typically may not be as flexible or
as willing to negotiate a lower price.
Utilities will be the bills for electricity, gas, water, sewer and telephone.
You may also consider cable/satellite TV as well as your ISP (Internet
service provider) as utilities.
Maintenance covers any routine upkeep of the house plus any repairs.
Note that there may be one additional monthly expense if you
buy a condominium. There is usually a condo fee that covers the
maintenance and repair of the common areas and other expenses. If
you choose a neighborhood or development with certain amenities
or services, there may be a homeowner’s association fee.
Down Payment
A down payment is the money you use to lower the amount due
on a purchase.
Do you need a down payment? If so, how much should it be?
The minimum down payment required will be determined by your
lender and the type of mortgage you get. A VA loan doesn’t require
a down payment, and some lenders offer down payment assistance
5
Shopping for a Home
Understand and Have Your Financing
in Place First
Before you beginning shopping for a home, you need to have your
financing in place. This is very important so that you can move quickly
when you’ve found the perfect house. It also shows a seller that you are a
serious buyer. The IQ Mortgage Guide guides you through the process.
Shopping on Your Own
Start your search by driving through your targeted neighborhood
and see what’s for sale. Ask friends and co-workers if they know
of any homes for sale. Use websites such as WI Homes (www.
wihomes.com) to search for listings in the area. Many individual
real estate agencies post their listings on websites too. Also check
out the newspaper ads and the free real estate sales booklets (available at many stores). All of these sources can help you determine
what is available in your price range and chosen area.
Visit open houses and model homes. Be aware that any real estate
agent you meet will be working for the seller — don’t disclose any
information you don’t want the seller to know. If you are working
with a buyer’s agent or a real estate attorney, when you sign the
“guest book” at open houses and model homes, always include
“represented by (your agent or attorney’s name)”. Doing this protects against the seller’s agent possibly claiming that they alone
represent you for that home.
Working with a Real Estate Agent
or Broker
A real estate agent is a person who is trained to sell real estate.
Agents can be either a broker or a sales associate. Brokers and sales
associates are licensed by the state and must meet specific education and experience requirements to receive a license. A broker’s
license permits them to conduct real estate business and negotiate
transactions for a fee. Sales associates work under the direction of
a broker. REALTORS® are members of the National Association
of REALTORS® and must subscribe to its strict Code of Ethics.
Less than half of all licensed real estate agents are REALTORS®,
and there are many good, experienced, ethical agents who are not
REALTORS®. Your aim should be to find an experienced, reputable agent that has the knowledge of the areas in which you’re
shopping and who is a good match for you. That means you may
need to interview and check out more than one agent.
Types of Agents
the buyer, the agent is still paid by the seller. Usually the commission is divided between the agent listing the home and the agent
who found the buyer. What this means is that unless you have a
contract with an agent to represent you as a “buyer’s agent” or “exclusive buyer’s agent”, the agent isn’t really working for you but for
the seller. Since the agent is paid by the seller, a conflict of interest
exists. How can you expect the agent to help you get the lowest
price possible for the home?
You can hire an agent to represent you. This is called a buyer’s
agent (or broker). A buyer’s agent is looking out for your best
iterests, not those of the seller. The contract between you and the
agent should specify what services the agent will provide you and
how the agent will be paid. A buyer’s agent can be paid in several
ways: by the seller on behalf of the buyer (the usual commission
split), an agreed set fee for the services or by the hour. Depending
on how you choose to pay the agent, this may cost you more out
of pocket, but may save you in the long run.
A dual agent serves both the buyer and the seller by acting as an
intemediary between them. In this case, the agent is still paid a
percentage of the sales price. Using a dual agent may be okay, if you
are knowledgable about the real estate market and have very good
negotiating skills.
Finding and Evaluating an Agent
It’s important that you choose an agent with whom you are comfortable and that will represent your interests. Start by asking family,
friends and co-workers about agents they’ve worked with, particularly those who have just bought or sold a home. Check out the
credentials of the agent and the broker or firm they work with.
In Wisconsin, the Department of Regulation and Licensing, drl.
wi.gov/index, is responsible for licensing real estate brokers, salespersons and business entities. Verify a license or company by using
the license lookup, ice.wi.gov/LicenseLookup/default. Choose
to lookup business professionals or business entities. Check the
Reports of Decisions, drl.wi.gov/dept/decisions/decisions, for any
discipline or other orders.
If you need to verify a license from another state or country
start with the Association of Real Estate License Law Officials
(ARELLO), www.arello.com.
Search the Wisconsin Better Business Bureau's databases,
wisconsin.bbb.org, for membership or complaints.
Choose a few agents to interview. The initial interview can be done
by phone, but before making a choice, hold a face-to-face meeting.
An agent is typically paid a percentage of a home’s selling price
by the seller. Even if an agent didn’t list the home but brought in
7
Here are some questions to ask the agent:
1. How long have they been in real estate?
 Number of years full-time?
 How long have they been with the current broker or firm? If
only a short period of time, why did they change firms?
Ask the references to tell you about their experience with the agent.
Ask questions such as:
 How well did you like the agent?
 How long did it take to find a home?
 What incentives did the agent have to find you a home?
2. How many houses have they found for buyers and sold for sellers in the past year?
 Did you have a contract with the agent? If so, what were its
key points?
 Request a list with addresses and prices. This will give you an
idea of the area and price range the agent has worked in.
 Would you use the agent again? If not, why not?
3. Ask them to tell you about your targeted neighborhood. What
are the pros and cons? What can you expect for your money?
After completing the interviews and talking with the references,
follow-up with any additional questions you may have. Then make
your choice.
 Use your neighborhood and home need/want worksheets as
part of the discussion.
Establishing Clear Channels of Communication
4. Ask for names of recent clients — buyers and sellers. Make sure
you get contact information.
5. Will they act as a buyer’s agent?
 How will they be paid? An hourly rate, set fee or percentage
of the purchase price?
 Will they expect an incentive commission if the negotiated
price is less than the asking price?
 Will you need to pay a retainer fee?
 Is there a minimum fee? If so, what is it?
 Is there a maximum total cost? If so, what is it?
 Ask to see the contract they use. Discuss it with them.
Once you have chosen an agent, you must sit down with them and
define your working relationship. Now is the time to have a detailed
discussion on what you are looking for and your price range. Using
your worksheets, make clear what the home must have and must not
have. Indicate those items on which you’re flexible or it doesn’t matter. Establish the primary method of contact: phone or e-mail.
What About FSBO Homes (For Sale
By Owner)
FSBO (pronounced “fizzbo”) homes are not listed with an agent; instead the homeowner is marketing the house and handling the sales
negotiations. The primary reason an owner will attempt to sell their
home themselves is to save on paying a commission. Some owners
may be willing to pay a smaller commission to a buyer’s agent.
 What services will they provide?
Unless you enjoy face-to-face negotiations, you may wish to hire a
buyer’s agent or real estate attorney to handle the negotiations on
a FSBO property.
6. How will conflicts of interest be handled? Specifically, what
procedures will be followed if the home you decide to buy is
listed by your agent or the agent’s firm?
What About Shopping for Homes on
the Internet?
 What is the length of the contract?
7. How will disagreements or disputes be handled?
After the interview, ask yourself some questions:
 Will you enjoy working with the person?
 Did they answer your questions directly or did they steer the
conversation elsewhere?
 Did they give you their undivided attention?
 Did they address your concerns?
8
You can begin your search without leaving the comfort of your
current home. By reviewing listings online, you can decide which
houses are worth visiting. Many listings have numerous pictures
and some even have 360° panoramic images.
IQ tip: Using the Internet to build a list of homes to look at is
smart, but don’t purchase a home without actually checking it out
in person. If you must make an offer before you can look at it, be
sure that the offer contains a contingency clause that allows you to
change your mind after you’ve seen the house.
Start with WI Homes, www.wihomes.com/property/quicksearch,
which is the Multiple Listing Service for southeast Wisconsin.
You can also check out your local newspaper ads online. These ads
can lead you to the website of the listing firm or agent.
If you are looking for a home in another area of the country, here
are three national sites to get you started.
 R
ealtor.com is the official site of the National Association of
REALTORS®.
 Homes.com
Touring and Evaluating Homes for Sale
Now it’s time to start visiting houses. Here’s a list of items you
will need:
 A
camera — still, video or both.
 An evaluation checklist (on the following pages). Print and use the
General Home Shopping Checklist from the U.S. Department of
Housing and Urban Development (HUD) or the Complete House
Hunting Worksheet from Freddie Mac (the Federal Home Loan
Mortgage Corporation). Use a separate checklist for each house.
 N
ewzillow.com, allows you to “cruise” over an aerial map and
pops up information, such as any property’s tax assessment
value, recent sales in the area and current sales listings.
 S omething on which to take notes, such as a notepad, PDA or
notebook computer.
IQ Tip: These sites want you to use them not only for finding a
home; they want to be your one-stop shop for a mortgage, insurance,
moving and anything else related to buying a home. Make sure you
do you homework properly before using any of these services.
 How well maintained is it — both inside and out?
What should you look for when touring a home?
 H
ow well does it fit your needs/wants list?
 A
re there any showstoppers — conditions that can’t be remedied
or you can’t live with?
 C
heck out the number of electrical outlets in each room. Also
check out the phone jacks and cable TV outlets.
 Is there sufficient closet and other storage space?
 How noisy is it? Can you hear from room to room?
 Check the water pressure, particularly on upper floors.
Here are some questions that you should ask. Use your checklist to
come up with additional questions.
 W
hat utilities do they pay and what are their costs? For example,
water/sewer, electricity, gas, oil, propane, garbage collection, etc.
Ask to see the bills for a full year.
 Any energy saving features?
 A
re there homeowner association or condo fees? If so, what are
they? Paid monthly or annually?
 What are the maintenance costs?
 W
hat defects does the home have? Any major repairs or renovations? By whom?
 Are there any pest control problems?
 W
hat fixtures and appliances are part of the sale? For example,
drapes, blinds, the dining room chandelier, refrigerator, etc.
 Any transferable warranties?
9
 Why are they selling?
The Neighborhood
 H
ow quiet is the neighborhood? Noisy neighbors? Airport flightpath? Recreation areas, such as ball fields, fair grounds or other
gathering places nearby?
Nearby Homes/Businesses:
appearance and condition
Safety/Security
Traffic
Noise Level
Parking
Snow Removal
Garbage Service
Fire Protection
Police
Neighborhood: restrictions/covenants
Zoning Regulations
Pet Restrictions
Age Mix
Other/Number of Children
 H
as the home ever suffered any damage? What kind? Have they
filed insurance claims on the damage? Do they have a CLUE loss
claim report for the property?
These questions are just the tip of the iceberg. Think about your
current residence to come up with more questions. What do you
like about it? What don’t you like about it?
When you’ve found a house that fits your budget, your needs and
your tastes, it’s probably time to make an offer.
General Home Shopping Checklist
You’ll want to make several copies of this checklist and fill one
out for each home you tour. Then, comparing your ratings later
will be easy.
The House
Square Footage
Practicality of Floorplan
Interior Walls: condition
Energy Efficiency
Fireplace
Closet/Storage Space
Number of Bedrooms
Number of Baths
Basement
Basement: dampness or odors
Exterior: appearance and condition
Roof: age and condition
Gutters and Downspouts
Screens/Storm Windows
Lawn/Yard Space
Deck/Patio
Fence
Garage
10
Good
Average
Poor
The Schools
Good
Average
Poor
Good
Average
Poor
Good
Average
Poor
Age/Condition
Reputation
Class Size
Curriculum
Achievement Test Scores
Quality of Teachers
Play Areas
Busing
Convenience To
Work
Schools
Child Care
Shopping
Recreation/Parks
Restaurants/Entertainment
Hospitals
Doctor/Dentist
Highways
Public Transportation
Airport
Church/Synagogue
Complete House Hunting Worksheet
You’ll want to make several copies of this checklist and fill one out for each home you tour. Then, comparing your ratings later will be
easy. This worksheet was provided by Freddie Mac.
Visit Date:_____________________________________________
Property Address:_________________________________________
Asking Price:_ _________________ Listing Date:__________________
Year Built:__________________ Square Footage:__________________
Master Bedroom:___________________ x_____________________
Notes:______________________________________________
Bedroom 2:______________________ x_____________________
Notes:______________________________________________
 Split
Bedroom 3:______________________ x_____________________
Notes:______________________________________________
Lot Size:____________________ Property Taxes:__________________
Bathroom 1:_ ____________________ x_____________________
Notes:______________________________________________
Property Style:  Townhouse
 Colonial
 Condo
 Ranch
 Contemporary  Other:
Overall Condition:_ _______________________________________
Total Number of Rooms:___________________
Bathroom 2:_ ____________________ x_____________________
Notes:______________________________________________
Bedrooms:_____________________ Bathrooms:__________________
Utilities
Exterior
Material Type:
Condition:
 Brick
 Wood
 Excellent  Good
 Siding
 Fair
Roof Type:
Condition:
 Asphalt  Slate
 Excellent  Good
 Tin/Metal  Other
 Fair
 Poor
Window Type:
Condition:
 Wood
 Vinyl
 Excellent  Good
 Metal
 Fair
 Other
 Poor
 Fair
 Poor
Gutters,
Chimney Condition:  Excellent  Good
 Double
 Other
 Poor
Garage:
 Single
Yard Condition:
 Excellent  Good
 Fair
 Poor
Enhancements:
 Patio
 Deck
 Pool
 Other
Fencing:
 None
 Chain Link  Wood
Foundation Condition: Excellent  Good
 Detached  Other
 Fair
 Other
 Poor
Interior
Family Room:_____________________ x_____________________
Notes:______________________________________________
Living Room:_____________________ x_____________________
Notes:______________________________________________
Den/Study:_______________________ x_____________________
Notes:______________________________________________
Laundry Room:____________________ x_____________________
Notes:______________________________________________
 Washer  Dryer
Dining Room:_____________________ x_____________________
Notes:______________________________________________
Kitchen:________________________ x_____________________
Notes:______________________________________________
 Gas Stove  Electric Stove Refrigerator Dishwasher
 Microwave  Updated/Designer Appliances Heating System:  Gas
 Electric_  Oil
 Other
Age:_____________________
Condition:
 Excellent_ Good  Fair  Poor
Air Conditioning: Type:_ ____________ Age:_____________________
Condition:
 Excellent_ Good  Fair  Poor
Water Heater:
Condition:
Type:_ ____________ Age:_____________________
Gallons:_ _________________
 Excellent Good  Fair  Poor
Electricity:
________ Amps_______ 220-240 volt lines for major appliances?
Water:
 Well
Sewage:
 Septic  Gallons_  Cesspool  Community System
 Community System
Water Pressure:__________________________________________
Budget
Ask for a copy of the last 12 months of utility bills to get an estimate of the costs.
Electric:
Summer Average:_____________________
Winter Average:_____________________
Gas:
Summer Average:_____________________
Winter Average:_____________________
Garbage Removal:
Summer Average:_____________________
Winter Average:_____________________
Water:
Summer Average:_____________________
Winter Average:_____________________
Homeowner’s Association/Condo Fees:_ ____________________________
Additional Costs:_________________________________________
Additional Notes:_________________________________________
__________________________________________________
__________________________________________________
11
Purchasing a Home
You’ve found a home that you like — and it fits your needs and
budget. It’s time to make an offer. But are you ready? Before you
fill in the blanks on your buyer’s offer to purchase form, you need
to carefully consider what terms and contingencies to include.
Although your buyer’s agent can help you with these (if you are
working with one), having a basic understanding of some of these
considerations is a must.
After you make your offer on a home, the seller typically will make
a counter offer. It’s time to negotiate. What are some aspects of
negotiating successfully? Again, your buyer’s agent can help, but
you can’t beat some basic preparation on your part.
Once you and the seller have agreed on the price and contract,
you'll need a home inspection, to obtain a mortgage, the property
appraisal and fulfill any other terms or contingencies of the contract leading up to closing.
This section provides a brief overview of these various aspects of
purchasing the home you’ve found.
Making an Offer for the Property You
Wish to Buy
 K
enosha County: www.co.kenosha.wi.us/rod/index
 M
ilwaukee County: www.milwaukeecounty.org
 O
zaukee County: www.co.ozaukee.wi.us/RegisterDeeds/Index
 R
acine County: www.racineco.com/registerofdeeds/index.aspx
 W
alworth County: www.co.walworth.wi.us/walco.nsf
 W
ashington County: www.co.washington.wi.us/washington
 W
aukesha County: www.waukeshacounty.gov
Analyzing the Comps and the Market to Determine Your Initial Offer
After you have the market data, look carefully at how the property
and the seller’s asking price (listing price) compare to similar properties. In the comparison, be sure that you look at properties that
are similar in size (bedrooms, baths, square footage, for example),
location and condition.
 I s the listing price in line with the recent market, right on the
average or just a little above or below?
Whether you’ve looked at a hundred houses or just three, when
you’ve found the house that fits your lifestyle and your price range,
what do you need to do to make an offer?
 O
r is the listing price much higher or much lower than the
comps? If the listing price is higher, are there any amenities or
features that might justify the difference or has the seller simply
overpriced his home (perhaps trying to recoup all the cost of
that kitchen remodel or added bath)?
“How much should I offer?”, is often the first question that pops
to mind. But first you need the answer two more important questions: 1) what have comparable homes in the area been selling for?
and 2) what is this specific home’s value in relation to those homes?
In real estate terms, you need to “look at the comps”.
If the listing price is significantly lower than other properties,
the lack of what features or presence of what problems (for instance, elderly mechanicals or a roof in need of replacement)
might account for this? Or does the seller have reason to want a
quick sale?
Getting the Comps — Recent Sales Data on Similar Properties
 H
ow does the condition of the house you want compare to the
comparable properties? In similar shape? In terrific shape with,
for example, a new roof and furnace? Needing work (cosmetic or
more extensive, such as updating kitchens, baths or mechanicals)?
A good buyer’s agent can easily provide comps and a market analysis for your target property from services available to the agency.
In addition, because the agent works for you, he or she can discuss
with you what all the data means in relationship to the property
you wish to buy.
If you don’t have a buyer’s agent, you can request the basic information from the dual or seller’s agent. The seller’s agent is required
by law to provide information you need to make an informed decision. Discussing what that data means for you as the buyer may be
less useful or wise because the seller’s agent, after all, first represents
the seller’s interests.
You can also look up recent sales yourself at the appropriate county
Register of Deed’s, Assessor’s or Recorder’s office, either on site or
online. All of the following Register of Deeds offices provide access
to real estate records online:
Use the checklist you prepared during your visit to the house to
help you think about these factors. There are also some other factors to consider as you think about price:
 I s the housing market hot or cold? In a seller’s market, where
houses are selling quickly, the seller may be unwilling to discount the price much, if at all. In a buyer’s market where many
houses are for sale and are staying on the market for a long time,
sellers are often more willing to go lower in price.
 W
hat’s the seller’s motivation? Find out what you can about the
seller’s motivation for selling. If the family is moving to a new
community in order to for the seller to take up a new job or
a couple is divorcing, for instance, the sellers may need to sell
13
quickly. But if the family is simply thinking about moving to a
newer or larger home and simply testing the sales waters, they
may be less receptive to your lower offer.
What is a Good Initial Offer?
Typically, your initial offer should be below the seller’s listing price,
should be based on your analysis of the value of the property compared to similar properties and should be below the top price you
are willing to pay. You want room to negotiate.
Should you discuss these factors with your agent to arrive at a
strategy? If you are working with an exclusive buyer’s agent, such
discussions can be very helpful. But keep your strategy and the top
price you’re willing to offer to yourself when talking or working
with a dual agent or seller’s agent; they are legally required to pass
along such info to the seller.
upgrades for which they typically charge a bundle. In practice, the
average cost for upgrades is typically inflated enough that many experts recommend that you purchase the basic model and then later
install upgrades such as flooring or countertops by contracting
with independent suppliers/contractors. If you wish, you might
try to negotiate for “free” upgrades as part of the purchase price.
In some cases perhaps the builder needs to sell the model quickly
or just has a couple of homes left in a slow market and would be
willing to come down on his price. You’ll never know unless you
make that lower initial offer.
IQ tip: Many developments have on-site agents who exclusively represent that development. You would be wise in such cases to have your
own representation, a buyer’s agent or real estate attorney, and not
work solely with the development’s exclusive agent. This is particularly important if you wish to negotiate price and other terms.
How Do You Make the Offer? What Terms and Contingencies Should
Your Offer Include?
Theoretically, you could make an offer to buy a property by writing
a simple statement such as “I offer to buy _________ property
for $_________ by such-and-such a date.” But in reality, to protect both you and the seller, you will make in writing an “offer to
purchase” or “contract to purchase” using a formal document that
serves as a legal contract that contains the terms, conditions, and
contingencies under which both buyer and seller agree to the sale.
A contingency, by the way, is a condition that must be in place for
the contract to go through. If the condition is not met, you have
the right to withdraw your offer. It’s one of the ways you have to
make sure that you are protected financially and that you get the
house you think you are getting.
You need to consider several terms and contingencies as seriously
as you do the price you’re willing to pay.
Recommended Contingencies for Inclusion in Your Offer to Buy
Can You Make an Offer Below Listing Price and Negotiate the Cost
for New Construction?
Most developers and builders will say that because they are building homes “on spec” that they have fairly small profit margins and
their list price for the home is fair and not negotiable. In the real
world, you may be able to negotiate a number of things, including
the price of the home. Many builders list a price with a small profit
margin for the basic model of the home, then offer a number of
14
 Y
our ability to get a loan for purchase. An offer typically contains not only the price that you are offering for the house but
the size and terms of the mortgage loan that you are applying
for. And the offer specifically states that your offer is contingent on obtaining this financing. Obtaining pre-approval for
financing your home before you start house shopping not only
helps you confirm what you have to spend on a home but it also
lets the seller know that your loan application will probably be
trouble free. The contingency clause says that if, for any reason,
you are not able to get a mortgage at the terms stated in the
contract, then you may withdraw your offer.
 Th
e house passing a home inspection. Whether your intended
home is an existing resale or new construction, failing to have
it inspected by a certified professional home inspector is asking
for trouble. A thorough home inspection assesses the structural
condition of the property, including inspecting roof, basement,
crawl space, electrical, plumbing, appliances, and heating and
cooling systems. The inspector looks at any signs of previous
problems as well as current existing problems; the inspector also
looks at positives. You should plan to go along on the inspection
visit so that you can ask questions and hear what the inspector
has to say. Given the readiness with which many folks file law
suits, inspectors may be more expansive informally than in their
written report.
The inspector may make notes during the inspection and provide you a written report within 1 to 2 days or may enter his or
her observations into a computer and produce a report on site.
You, the buyer, pay for the inspections. The average cost ranges
from $300 to $500 — some of the best dollars you can spend.
If you have observed some potentially big problems with specific structures or mechanicals (such as cracks in the foundation, possibly leaky plumbing or a heating/cooling system that
seems on its last legs), you may wish to include clauses requiring
inspection by specialists in these areas.
Requiring a “termite or wood pest infestation” inspection, even
in areas where these are not required by law, is certainly a good
idea. Depending upon the home’s age and the geographical
location you may wish to consider requiring testing for other
toxic substances such as asbestos or radon gas.
If the home inspection results reveal the home does not meet
your criteria or approval, or the inspection reveals problems that
the seller refuses to fix, then you can withdraw your offer. If the
problems are fixable, then you may ask the seller to fix them
or perhaps negotiate a new lower offer/price that takes into account the estimated cost to make the repairs. If you are making
an offer on new construction, then you typically would create
a “punch list” of work that needs to be completed or corrected
that the builder agrees to perform.
In all cases, but particularly when the seller agrees to make repairs or when certain property (including appliances) is to remain
with the home, you should also request in your offer the right to
a walk-through inspection right before closing. If you are buying a newly constructed home, a walk through to check that the
“punch list” has been completed properly is important.
Because the inspection must take place quickly after your offer
has been accepted (usually within about 5 days), it’s important to
evaluate and select the home inspector you wish to use before you
suddenly need one. See Tips for Finding a Professional Home
Inspector in the box at the bottom of this page.
 H
ave the offer or contract to purchase reviewed by your attorney. Many experts recommend that you have your offer-to-purchase contract reviewed by a qualified real estate attorney — even
if you are working with a buyer’s agent and particularly if you
are a first-time buyer. Experts insist this step is a must if you are
working without help and buying a FSBO home.
For any offer, if time allows you should have an attorney look
at the contract before you sign it. Even if your attorney looks at
the offer, experts still recommend including a contingency that
requires that your attorney approve the contract.
 Make your offer subject to your approval of the home after
you’ve viewed it in person. We recommend that you never offer
a contract to purchase a home or property that you have not
Tips for Finding a Professional Home Inspector
Ask for recommendations from your buyer’s agent,
real estate attorney, or other real estate professionals
as well as from friends, family and co-workers.
Look for membership in a major professional home
inspection association and for specific training.
ASHI — The American Society of Home Inspectors,
perhaps the largest most respected association,
National Association of Certified Home Inspectors is
a trade association.
Interview several potential home inspectors. Ask about
their background, training, years and type of
Check the potential candidates with the Better Business
experience doing home inspections, certification
Bureau and appropriate government consumer affairs
and licensing, and continuing training. Ask for
agencies.
references, then call those references. Be sure that
Check if the potential candidates are a member of
the Wisconsin Association of Home Inspectors.
requires its members to pass certain tests and to
Check the Wisconsin Department of Regulation &
have performed a certain number of home inspections.
Licensing License Lookup for credentials and Reports
American Institute of Inspectors is a trade association.
of Decisions for any discipline or other orders
affecting the credential holder.
the inspector provides a written report and welcomes
your accompanying them on the inspection and the
follow-up walk through.
Sign a written contract that spells out what you can
expect of the inspector and the inspection.
seen in person. But if you think you’ve located just the right
home via the Internet and are convinced it might be snatched
out from under you, then at least protect yourself by reserving
the right to withdraw the offer if you find problems after you
see it in person. This same contingency clause may be advisable even if you have seen the house and your spouse has not,
but you think you’d better immediately offer a contract because
other prospective buyers are drooling over the house. Include a
clause that says something like, “subject to the approval of my
spouse Judy (or Joe).”
Other Common Contingencies Included in Offers to Purchase
Here are a few other contingencies that buyers have found useful
in certain instances. Just remember not to go overboard with a
load of frivolous contingencies that could work against the seller
accepting your offer. If you are adding a contingency that is not
on the contract form you are using, then having your real estate
attorney check the wording can be a good idea.
 Y
our approval of the seller’s disclosures about the property. For
example, you may wish to have the seller provide you with a copy
of the CLUE “loss history report” for the property. CLUE stands
for Comprehensive Loss Underwriting Exchange, a database to
which most companies providing homeowner’s property insur-
ance report claims. Recently a number of buyers have been finding that they may not be able to get insurance on the home they
wish to purchase or may have to pay much higher rates to insure
the home if the property has a history of problems and insurance claims. Although many consumer advocates find this trend
alarming, it may be a while before any changes take place in these
underwriting practices and you should protect yourself. Only the
homeowner, insurance company or lender can request the CLUE
report, which is why you must request it from the seller. A-PLUS
is another company that provides loss history reports.
 S
ale of your current residence. If you are trying to buy a new
home before you are able to sell your old home — this situation
often occurs when you must relocate due to your work — then
you may wish to include this contingency.
 A
pproval by the board of the co-op or condo you wish to purchase. Where board approval is required for you to “buy into” a
co-op or condo, then this contingency is a must.
 C
ompliance with the building codes. When considering new
construction or an extensively remodeled existing home, such a
contingency may be wise even if the property has a “certificate
of occupancy” indicating the government inspectors have signed
off. The home inspector you hire should be qualified to check
such compliance in this case.
 Th
e home appraises at or above your agreed upon offer. Perhaps
you are afraid that the fact that home backs up to the buffer
zone of a shopping center makes it worth less than you’ve agreed
to pay. Or you’ve gone a little higher than you think the home
is worth because you badly want the house. In such cases this
contingency clause can protect you and may in the second case
help the seller say yes to your offer.
 C
ertain timing may be of the essence. For example, you may
wish to say that the seller has only a certain amount of time to
respond to your offer or you might indicate that you must be
able to take possession by a certain date or the deal is off. Sellers
typically desire a limit to the time you have to obtain a mortgage. If you’re pre-approved by the credit union when you start
shopping, you’ve probably already answered that requirement.
16
Negotiating the Sale
No matter what you see on TV home buying shows, only rarely
does a seller say yes to a first offer from a buyer. In most instances,
you should expect a “counter offer.” Then the negotiation starts.
If you are working with a buyer’s agent, your agent will be the go
between, who actually presents your offer and handles the faceto-face (usually agent-to-agent) negotiation for you. If you are
working with a dual agent, then remember that the agent is fundamentally a seller’s agent, who must represent the seller’s fiduciary
interest even if the agent is scrupulously fair and ethical with you.
If you are dealing solo with a FSBO seller, then you handle all the
negotiations yourself or you could hire an experienced real estate
attorney to help you with these details.
What Items are Open for Negotiation?
Typically, the main focus of negotiation is what you will pay for
the house, but other factors also come into the negotiations, many
of which can affect what you pay overall for the house. Here are
some of the items that may be part of your negotiations.
carpet. Maybe with your retro tastes, you wish to buy the custom
horseshoe shaped, conversation “pit” sofa, designed just for the
great room. It’s certainly a good idea to spell out in the contract
what appliances are included in the purchase. It’s a must for any
personal property you wish to purchase from the seller.
Some Tips on Negotiating
Negotiations for a home — something you really care about and
that you’ll be borrowing a big chunk of change to purchase — often
produce tension. But you can do your part to make them go well.
These tips can help:
 K
eep your emotions out of the mix. Even if you’ve fallen in love
with the house, take your enthusiasm and your anxiety (will I get
it? I’ve just got to have it!) out of the picture. Stay calm and noncommittal; don’t give away your bargaining power. Stick to your
budget. Remember, there are always more houses out there — you
don’t have to break your budget or give up important contingencies. Always be prepared to walk away.
 Th
e price you will pay for the house. Typically the seller will
counter your offer with a price lower than the original listing
price but higher than what you’ve offered. You in turn may wish
to counter the counter offer. Or you may wish to ask for other
concessions, such as the seller paying all or part of your closing
costs. All counter offers, yours and the seller’s, should be made
in writing. The recommended way is by amending and initialing
the changes on the original contract form.
 Th
e seller paying all or part of the closing costs. You may be
willing to agree to a slightly higher price, for example, if the
seller agrees to pay for your closing costs. For an explanation of
various aspects and costs related to closing, see the Resources
section of the Educators Credit Union Mortgage Center. Keep
in mind that your lender may have limits on the amount that a
seller can contribute towards closing costs on your behalf.
 What repairs are necessary and who will pay for them.
 D
ate of the closing and your taking possession of the house.
For example, the seller might take a little less than he wants
because he needs to get out of the house quickly and would be
really happy if you could close in two weeks.
 Agreement on contingencies.
 W
hat appliances remain with the house as part of the purchase.
What personal property is included in the purchase. You might
think that the stove and refrigerator stay with the home; ditto
for the interior window shutters. Not so fast — sellers have been
known to take even built-in appliances and fitted wall-to-wall
17
 S
et a time limit for a response to your offer and counter offers.
Don’t let the seller drag the process out; set a fair time limit for
a response. Depending on the situation, that might be a couple
of days or more, or as you get further into the negotiations, even
a few hours.
 B
e patient. Don’t be badgered into making too quick a move or
going beyond your budget.
 B
e courteous. Even if you think the seller is nuts about the
value of his house, has maintained it like a slob or has made a
ridiculous counter-offer, don’t say so. Keep the negotiations as
cordial and neutral as possible.
When you and the Seller Have Agreed, What Size Deposit “Earnest
Money” — Should You Give to “Seal the Bargain”?
To show that you’re a serious buyer, you back up the contract with
a “good faith deposit” or “earnest money.” This deposit is usually
in cash, is usually applied to your down payment and should be
held “in escrow” by the agent (who is legally required to keep the
money in a special account separate from personal or agency funds)
or by a neutral third-party escrow service. You should not give your
deposit directly to the seller (if you’re buying a FSBO home, use
an escrow service).
How much should your good faith deposit be? You’ll hear different
recommendations from different sources, and common practice
may vary around the country. We recommend avoiding a large
deposit (which could put your money at risk in a worst-case scenario) — usually a pre-approval letter from your lender will impress
the seller more. On most homes a deposit of $1,000 to $5,000 is
probably enough — generally speaking, keep the deposit as low as
possible. Your offer to purchase details the conditions and terms
under which your deposit is returned should the outcome of one of
your contingencies cause you to withdraw your offer. Nevertheless,
it’s smart to put as little of your money at risk as possible.
What Steps Are Needed to Prepare
for Closing on Your New Home?
The time between agreeing to the sale and closing and taking possession of your new home can be busy. Here’s a summary of some
of the steps usually required.
 O
btain your financing. If you’ve shopped for a home the IQ
way, then you’ve gotten a pre-approval for a mortgage from
Educators Credit Union or another lender. When you reach a
purchase agreement, you simply have to complete the application process. In addition to assessing your credit worthiness, the
lender will check on the value of the property, typically order-
18
ing a property appraisal and a title search. The lender will also
require that you obtain title insurance.
 A
rrange for homeowner’s insurance on the house. Lenders will
also require that you insure the property, but smart homeowners
already know such insurance is a must. Rather than just getting the bare minimum, consider insuring your home for the
cost to rebuild it at the current time. Such insurance may cost
a bit more but can best protect your investment. If your house
is in a flood plain, you will need to purchase separate flood insurance, which is sold by insurance agents but provided by the
federal government. Private insurers offer earthquake insurance
for homes in some areas and of certain types of construction.
 A
rrange for title insurance. In most states the seller or seller’s
agent arranges for the purchase of title insurance. In other states,
although the seller must present a house with a good title, the
buyer is expected to confirm this with the purchase of title insurance. Request the opportunity to review a copy of this policy
before the day of closing; have your real estate attorney or buyer’s
agent review it as well.
 Arrange
for a final walk-through just before closing. Smart
buyers arrange for a brief walk-through the house, with their
home inspector, if appropriate, to see that new construction has
been properly completed, that repairs have been made and that
the home is in the promised condition (though rare, sellers have
been known to strip a home of appliances, light and plumbing
fixtures and trim hardware, although those items were covered
in the sales contract).
Time for the Closing
If you’ve shopped and negotiated for a new home the IQ way, then
your closing should be a breeze. At the closing you sign the documents (the legal contracts) that will make the house you’ve found
your home. As experts often note, purchasing a home is the largest
personal investment that most Americans make.
Closings are handled differently in different states, or in formal
terms, the laws and regulations for the “conveyance of property”
vary from state to state. Typically, closings are conducted by a settlement agent, who in some states is required to be an attorney. In
some cases, two attorneys, a buyer’s attorney and seller’s attorney,
are required.
Who attends the closing? At a minimum, the settlement agent or
“closing attorney”, the seller and the buyer. Usually, the seller’s and
buyer’s real estate agents will attend too. And in some cases a representative of the lender may attend. You and the seller may have your
personal real estate attorneys (if you have such) attend.
So what can you expect? You can read more about what’s involved
in closing on the Educators Mortgage Center, website http://ecu.
mortgagewebcenter.com/Default.asp?bhcp=1, Here are some of the
items you’ll typically be signing off on or receiving:
 Th
e loan papers related to your mortgage. Among these are
the note, settlement statement (HUD 1) that details your loan,
down payment and all the costs/fees you’ll pay at closing, the
cash you will need, Federal Truth-in Lending Statement and
various other items.
 Title insurance papers.
 A
greement about fees for settlement agent and fees for the real
estate agents.
 Lien waiver affidavit and deed signed by the seller.
 P
rorations between the seller and buyer for property taxes,
insurance and other annual expenses.
 Th
e keys to the property from the seller. If you have made
separate arrangements for the seller to temporarily occupy the
property beyond the closing, then you may execute an “occupancy agreement” with the seller.
After the closing, the settlement agent typically will record the
deed with the county establishing your title as the new owner.
Relocating Resources
Moving to another state or country rather than just across town?
Here are some resources to help you.
Moving to Another State

Start with the USA.gov site. This is a quick way to access any
state’s home page. You will also find links to local governments
and specific agencies. Many state government websites have detailed information for new residents.

Local associations of the National Association of REALTORS®
have links to local real estate including the MLS. Use the
Association Directory from realtor.org to locate one in your desired area.

Want to know more about the area? Check out the area newspapers. These sites can help you find them: NewsVoyager, www.
newspaperlinks.com/voyager, U. S. Newspaper List, usnpl.com,
and Home Town News, www.hometownnews.com. You can also
use these city guides: Citysearch, www.citysearch.com, and USA
Citylink, www.usacitylink.com.

Moving.org is the site of the American Moving and Storage
Association. The site has lots of information such as Moving
Terminology that will be helpful.
Moving International

A few sites to check out a country: CIA World Factbook, www.
cia.gov/library/publications/the-world-factbook, The Nations
Online Project, www.nationsonline.org, and BBC News Country
Profiles, news.bbc.co.uk/2/hi/country_profiles/default.

Guidelines for International Relocation from Allied International, www.allied.com.

Living Abroad, travel.state.gov/travel/living/living_1243.html,
has lots of information from the U.S. Department of State.
19
Moving into
Your New Home
Now that you have a new home, here are some tips for making
your move into it go smoothly.
 A
rrange for service for the various utilities. Telephone, water/sewer,
electricity, gas, trash, cable/satellite, broadband Internet, etc.
 C
hange your address. MoversGuide, moversguide.usps.com,
from the U. S. Postal Service allows you to change your address
online, including magazines.
 P
lan for moving the heavy stuff. Decide if you want to do it
yourself with help from family and friends or if you want to use
a moving company.
When looking for a mover, ask family, friends and co-workers for
recommendations. You can also check with the Better Business
Bureau, wisconsin.bbb.org, or the Wisconsin Movers Association,
www.wismovers.org/index.
Additional Moving Resources
 P
rotect Your Move, www.protectyourmove.gov, from the Federal
Motor Carrier Safety Administration has various information on
moving such as: Your Rights and Responsibilities When You Move,
www.protectyourmove.gov/consumer/awareness/rights/rights, and
Ready to Move? — Tips for a Successful Interstate Move, www.
protectyourmove.gov/consumer/awareness/tips/hhg-brochure.
 8
Red Flags to Look for When Hiring a Moving Company
(http://www.aarp.org/family/housing/articles/redflags.html) from
provides a list of warning signs to avoid scams or shoddy service.
 Educators Moving Checklist on page 21.
20
Moving
Checklist
4-6 Weeks Before Move
 Disconnect and drain appliances for move
 Get estimates for movers or rental truck
 Drain fuel from power equipment
 Schedule movers or rental truck
 Confirm travel arrangements
 Determine furniture layout for new home
 Confirm arrival time of movers/pick-up time of rental truck
 Make inventory of household items
 Have payment ready for movers
 Arrange for school transfer
 Gather and clean outdoor furniture
 Transfer medical and dental records
 Return cable box, cable modem, DSL modem if necessary
 Clean out all closets and drawers
 Finish packing
 Get packing supplies: boxes, packing paper, bubble wrap, tape, markers
 Organize keys
 Use up or dispose of food, cleaning supplies and hazardous materials
 Clean house
 Have garage sale/donate unwanted items
Moving Day
 Arrange for carpet and drapery cleaning
 Double-check that all cupboards, closets, dishwasher and
 Arrange for house cleaning
 Arrange for move of pets
 Give movers tour and instructions for what is being moved
 Arrange for utilities (cancel old; start new):
 Electricity/gas
 Water/sewer
 Telephone/DSL
 Garbage/recycling
 Cable/satellite
other appliances are empty
Within 30 Days After the Move
 Change address:
 Driver’s license
 Auto registration
 Enjoy your new home!
 Arrange for transfer of homeowner’s/renter’s insurance
 Begin packing
2-3 Weeks Before the Move
 Set aside critical documents and items you will keep with you
 Transfer prescriptions
 Change address:
 Family/friends
 Newspaper/magazines
 Financial institutions
 Insurance policies
 Credit card bills
 Cell phone service
 Internet provider
 Schools/church
 Employer
1-5 Days Before the Move
 Defrost freezer
 Clean refrigerator, stove and oven
21
Home
Maintenance Tips
Buying a home is the biggest investment that most American
families will make. Smart homeowners know that maintaining
that home in good shape protects their investment and enhances
their enjoyment of their home. In addition, the terms of the
mortgage may require the homeowners to “adequately maintain
the property.”
Annually
Home maintenance, however, can cover a wide range of activities.
They can be categorized into interior and exterior tasks or by
home system, such as plumbing, heating & cooling, electrical, and
landscaping/grounds maintenance. Certain maintenance tasks
should be performed monthly, seasonally or annually. How do you
know what to do when? Why not review the basics first and then
use one of a number of good home maintenance checklists to help
you organize further.
 Inspect, repair and reseal tile grout in bathrooms, kitchens and
any other areas.
Basic Home Maintenance Activities
Once a Month
 Check the filters on your heating/cooling unit. If you have
humidifiers and electronic air cleaners, their filters should also
be checked. Change or clean on the recommended schedule.
 Check faucets for drips and the rest of the plumbing for leaks.
Repairing minor drips and leaks can prevent major water damage
in the future. It also will help with conservation and keep down
your water bill.
Semi-annually or Seasonally
 Change the batteries in your smoke detector twice a year. Fire
experts suggest changing the batteries when you change your
clocks at the beginning and end of Daylight Savings Time. Or
choose two family birthdays that are about 6 months apart.
 Draining a gallon or two of water from your hot water heater at
least twice a year can extend its life expectancy.
 Clean out your roof gutters. Particularly don’t let the gutters get
clogged with leaves. General recommendation is twice a year in
the spring and fall.
 Trim shrubs and trees so that they clear the foundation, exterior
walls, and roof of the house. Shrubbery that’s too close to the
house can promote the growth of mildew, mold and algae,
particularly during warmer weather. Root growth can damage
foundations. Limbs can scrape paint on siding and trim.
 Clean leaves and trash out from under decks and porches. Pull
mulch away from foundation walls.
 Check and service lawn care equipment in spring before needed.
Check snow removal equipment in fall before you need it.
22
 Have your heating and cooling system(s) serviced.
 If you have a wood-burning fireplace or stove, check the chimney
and have it cleaned if there is any creosote or soot build-up.
Check the soundness of the mortar at the same time.
 Make a quick inspection of the exterior of the house. Check
foundation for cracking, blocked vents and leaks. Check caulking
around doors and windows. Check paint for peeling, cracking,
fading or blistering.
 Check the roof for leaks. You don’t have to get on the roof
necessarily, but can inspect the underside of the roof in the attic
for any signs of leaking. If you spot any, it’s probably time to call
a professional.
General Activities
 If you don’t currently have a termite service, have a thorough
termite inspection. Follow up on any treatment and repair
recommendations. Keep your termite protection current, it will
save you money in the long run.
 Make sure that you know where the main cut-off valves or
switches are for the home’s plumbing system, electrical service
and gas service.
Home Maintenance Checklists
Available Online
The Internet is full of home maintenance information. the article,
Online Resources for Homeowners, will help you explore some of
the resources.
But if having a checklist helps keep you on focus and on target,
you might try one of the following checklists:
 Home Maintenance and Repair Checklist www.educatorsiq.
com/ho/online_resources.htm from www.checklists.com.
 Checklist for Maintaining Your Home from the Mississippi
State University Extension Service http://msucares.com/pubs/
publications/p1505.html.
 Home Maintenance, a factsheet from the Ohio State University
Extension Service http://ohioline.osu.edu/hyg-fact/5000/5172.
html, provides a handy chart of chores that you can print out
and post.
The popular PBS program Hometime also provides a series of
preventative home maintenance lists and other useful articles.
Online Resources for Homeowners
The Internet offers endless information for the homeowner, from step-by-step instructions to checklists for maintaining your home, to
finding a contractor. Here are some resources for starters.
General Information
Home Improvement
How Stuff Works
Do It Yourself
Home Improvement Store Help
Home Maintenance and Repair
www.doityourself.com/
www.howstuffworks.com/
Home Depot Know How
www.homedepot.com/webapp/wcs/stores/servlet/
ContentView?pn=Know_How&langId=-1&storeId=10051&ca
talogId=10053&navFlow=3&searchRedirect=know how&cm_
sp=searchredirect-_-know_how-_-x-_-x
Lowe’s How to Library
www.lowes.com/lowes/lkn?action=topicSelect&topic=howTo
Ace Hardware Projects and Solutions
www.acehardware.com/infohome/index.jsp?clickid=topnav_img
web1.msue.msu.edu/msue/imp/mod02/master02.html
Handy Man USA
www.handymanusa.com/
Home Tips
www.hometips.com/
Popular Mechanics
www.popularmechanics.com/
The Old House Web
www.oldhouseweb.com/
TruValue
www.acehardware.com/infohome/index.jsp?clickid=topnav_img
View Remar’s IQ Homeowner’s Guide and a complete listing of online resources at www.educatorsiq.com/ho/online_resources.htm
Educators Credit Union
P.O. Box 081040, Racine, WI 53408-9984
www.ecu.com