Feature Articles
Home Ownership
Ronn Phillips, Arch.D., and Bobbi Hauptmann, Environmental Design, College of Human Environmental Sciences, University of Missouri-Columbia
For many Americans, owning a home is the ultimate dream.
Several important aspects should be considered:
Purchasing a House: You may make an offer on a
house by submitting a purchase and sale agreement to your
real estate sales professional, who is required by law to
give it to the seller. The elements that potential home
buyers should consider in preparing their offer include the
market value of the home, any special circumstances
surrounding the sale of the home, how much they can afford
to pay, and the condition of the home. Make sure that your
offer price reflects any needed repairs to the house and any
special contingencies. Your real estate sales professional
should work with you to include those items in the offer.
The seller may accept, reject, or make a counteroffer. If
your offer is accepted, you are on your way to getting a
home.
Selling A House: Keep in mind the following
considerations to help the sale process go more smoothly:
- Time Becomes Money - Place your home on the market as far in advance as possible of purchasing a new one.
- Check Your Curb Appeal - A home that's visually appealing and in good condition will attract potential buyers driving down the street.
- On the Inside - Clean the entire house and remove any unnecessary clutter.
- Go It Alone or Choose an Agent - unless you are willing to do ALL of the work in selling your home, a real estate agent is a good buy.
- Set a Fair Price
- Seek Legal Representation - a must if you are selling your home yourself.
- Check with your Tax Consultant
To Purchase or to Rent: Many myths surround the rent
vs. buy question in the U.S. The biggest homeownership myth
is that owning a home is a huge tax break. If your mortgage
interest and other itemized deductions do not go above the
standard deduction amount, you don't get any tax advantage.
Putting all of your money into your house isn't exactly the
best solution to poor saving skills. On average, Americans
move every five years. The first five years of a home
mortgage are overwhelmingly made in interest - not to
principal. If you want to invest your money smartly, do the
numbers yourself or talk to a financial adviser.
"Green" House Designs: "Green" refers to building
technologies that are ecologically responsible and
sustainable. In addition to being less harmful to the
environment, creating healthy indoor air quality, and
utilizing renewable resources, green building technologies
can be affordable. Houses that are energy-efficient, for
example, use less energy than their conventional
counterparts, which makes them more affordable to
lower-income families. Smaller designs and alternative and
salvaged building products rely less on precious resources
and can cost less than traditional approaches.
"Life-Cycle" House Costs: The purchase price of a house primarily reflects the cost of materials, finishes, and equipment. Built into that cost, are the life expectancies of those components. Typically, components that have a more sustainable longevity cost more initially. Consequently, their maintenance cost over their lifetime may be significantly reduced. Examining the total cost of materials, finishes, and equipment when purchasing a house should take into account the maintenance costs over the expected life of the components - the "life-cycle" costs.
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Last update: Tuesday, April 01, 2008
