The buying process in the USA follows strict legislation. In order to clarify the procedures and explain some of the terminology, we have compiled a list of frequently asked questions and answers.
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Having long been associated with the worst of the US sub-prime market crash, many people, including Orlandians, are beginning to realise the investment potential of foreclosure properties. That said, there are still several reasons why locals will look to steer clear of this market altogether.Read more
This very much depends on what you consider to be a 'good area'. In buy-to-let terms, the best neighbourhood is not necessarily the one where you'd like to raise your kids or arrange coffee mornings with the neighbours; it's the one that has will provide the greatest supply tenants and offers the best yield on your investment.
Making a reservation on a property in the USA is fairly simply and it shouldn't take long to get your head around this straightforward part of the homebuying process. Having identified the home you want to buy, the first thing you'll be asked to do is to sign a sales and purchase agreement. This is a standard contract between the seller and the buyer used in most US real estate transactions.Read more
It is a serious offence not to pay your rent in the USA, or indeed anywhere in the United States for that matter. Americans take late rental payments very seriously and the eviction process is usually initiated much faster than it is in the UK or most other countries. While every landlord-tenant relationship is different, the standard tenancy agreement will demand that the rent must be paid by the 4th day of each month. Should the rent go unpaid past this date a financial penalty is usually imposed on the tenant.Read more
The answer to this question will depend very much on the type of property you're planning to buy in the USA. However, in theory you have the same right to obtain financing to buy a home as any local resident does. This means that you can theoretically obtain a loan of up to 70% of the value of the property provided you have a good credit rating in your home country.Read more
the USA property tax, or real estate tax, is calculated on the assessed value of your property. It also includes the value of any personal possessions which cannot be removed without causing damage to the property. Remember that this is the assessed value of your home at the time of the appraisal and has no bearing on what you actually paid for it.Read more
The term earnest money often confuses foreign buyers as, depending where you look online, there can be conflicting information. Earnest money is simply another term for a good faith deposit. Generally speaking the earnest money deposit will be equivalent in value to about 1-2% of the purchase price of the home.Read more
A foreclosure in the USA is comparable to a repossession in countries such as the UK. These typically occur when a buyer has defaulted on their mortgage payments and have lost their home. Though far less common in today's market, foreclosures were a relatively everyday occurrence in the run-up to the 2007 sub-prime crash when the lending requirements for US homeowners were far less scrupulous then they are now.Read more
An independent survey is essential when buying a home in the USA and we would always advise that you organise for one to be completed during the grace period between the sale and purchase agreement and the final closing date of the purchase. You are certainly within your rights to have one completed and any realtor that suggests otherwise is not giving you the full picture.Read more
This is the million dollar question, quite literally. There are several factors that need to be taken into account when it comes to calculating how far your the USA property could potentially appreciate.Read more