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Show w he y JU j Their $5000 had become $19,000, which they used as the down payment on a larger house they really liked. Al and Wendi won the house-hun- t f f game by cleaning, decorating and repairing, but they also won because their house was in a good town, a pleasant neighborhood, and on a lovely lot. In other words, it was very salable. The real key to good value in all home buying situations is location. A large colonial among tiny Cape Cods, a pretty ranch that backs up to a highexecutive way, or a custom-buil- t home in a town where the schools are especially poor will not bring a good return on your investment. Today's best buys are houses that are rundown and poorly decorated but structurally sound. well-locate- d GETTING A MORTGAGE brokers and even the large commercial banks in all the Yellow Pages within a radius of your house. "Creative" financing and innovations also are happening everywhere. Some banks are casting balloon mortgages, where the home owner makes payments as though he had taken out a mortgage but agrees to refinance or the mortgage at the repay end of two or three years Other banks 40-mi- 30-ye- have adopted the newly authorized renegotiable-ratmortgages (RRMs). The RRM, sometimes called a rollover mortgage, allows a new interest rate governed by market conditions to be set at intervals of three or five years. The rate change, however, cannot exceed five points up or down life of the mortgage. over the e 30-ye- some In states, "wrap-around- " mortgages are in common use. In a "wrap-aroundthe seller continues to pay on his original mortgage while ," Mortage money is available, and now is the time to shop extensively for the best deal A competent real estate agent in close touch with the money market can be invaluable to you. Or you can do your own scouting by calling all the savings banks, mortgage Carolyn lanik's books include "Selling Your Home: A Guide to Getting the Best Price With or Without a Brokcr"and The House Hunt Game: A Guide to Winning." giving the buyer a second mortgage on the property at a higher rate Throughout the country, conventional mortgages that do not have a "due upon sale" clause are assumable by the purchaser. Some sellers in this tight market are willing to accept a buyer's cash and then hold a mortgage for the balance of the purchase price, usually at an interest rate slightly lower than that prevailing at area lending institutions. And other sellers, especially those under pressure to sell, will accept a long-ter"contract of sale." Under a contract of sale situation (sometimes called a "land contract" or a "contract for deed"), the price of the property is set, but the closing date is postponed for a year or more. The buyers turn over their down-paymemoney to the sellers and take occupancy of the house. They agree to pay the sellers a monthly fee, some of which may apply toward the purchase price. When the tight money situation eases and the buyers can obtain a mortgage, the sale is closed If you are considering a new house, down-payme- some builders have mortgage commitments at rates as low as 1 1 percent on houses now under construction These are worth hunting for, so call all the builders in your area. The rates on FHA and VA government-sponsoremortgages were reduced to 1 1 5 per cent as of May 15. And graduated-paymen- t mortgages, which are designed to help young families, are available Ask your local lending institution, mortgage broker, or real estate agent about these mortgages d A WORD TO THE WISE home buyer, you are a first-timas much information as possigather If e ble about home buying in general and about your local area conditions in particular. Do some preliminary mortgage shopping and keep in touch with the money market. Get a real estate agent. Shop thoroughly and carefully for a good house. And then bargain hard. You will be successful. If you are a second-timhome buyer, do all the above and also be sure your present home is legally sold before you sign a contract to buy another top-notc- h e p 3 a good one, getting the extras, setting the price convenience if you raise your offer or to suit the seller's netxls if you insist he come down in price. Or you might raise your offering price hut ask that the seller pay fhe closing costs. Service. Use a Make your contract contingent upon a favorable report by a professional service. The cost of this service usually runs Ixitween SWU and S 150. hut it is money well spent. If the insxicfion reveals faults or imminent rexiirs. you can then negotiate with the seller to reduce the price to cover the cost of rexiirs. Home-Inspecti- home-insXcfio- PARA(X n JUNt 29. 1WK) 5 Where to Find the Best Buys Handyman Specials. The "handyman fxirf should lie a need for cosmetic rexiirs. Faint and decorating dollars are returner! tenfold, but money sxinf on a new furnace or roof dixfs not appreciably increase resale value. Old Houses and Odd Houses. Uncommon or currently uniopular floor plans (such as those of the 1930s) will often hold up a sale. Think creatively alxiut room use or remodeling md watch for price reductions. Out to the Country. Prices are lower in areas ur from business and industrial concentrations. A country home can be a gtxxl hay. esx?ciaiiy if you don't have a long commute to work. Back to the City. Inner-citare being revitalized. The Ix'st housing buys are in catching an area just as its reversal begins. Watch for new shops, fresh crxits of xiint or rernrxleling. children playing outdoors in the evening, xxiple willing to talk with pride uhout their new y neighlxirs. neigh-Ixirhixx- ls Towns Where Taxes Are High. Home prices in some towns and sometimes in whole areas have been lagging behind the notional average for several years because buyers have been deterred by high local taxes. In the TlOs when the value of community services, local conveniences and low commuting costs negate the tax bite houses in these towns will appreciate rapidly. 77iey are some of todays Ix'st fxirgains. and the municixil faxes xiid are (h'ductible on your fedeml income fax return. |