How is buying a house in the United States: the experience of a Russian-speaking immigrant

A Russian who moved to the United States a few years ago and bought a house in one of the cities of "golden life", told the publication Realting in detail about how this happens in the States, and why there are practically no chances for real estate fraudsters.

Фото: Depositphotos

“Every home has a story, and in America, anyone can recognize it.”

Arseny Danilov moved to the United States from Russia about 5 years ago. During this time, he managed to buy a house in one of the states and told all the nuances of the process of buying real estate in the USA.

“I’ll start my story with the fact that Americans treat their home as an investment, and this is a fundamental difference from “our” thinking,” said Arseny Danilov. — Buying a Home in the USA begins with the selection of the property through special applications, the most popular of them are Zillow and Trulia. Here, each buyer determines for himself the importance of common parameters: price, number of bedrooms and shower rooms, the presence or absence of schools nearby, the year the house was built, the size of the land, the amount of the monthly tax (it can be from 3 to 15 thousand dollars). ”

“Another very important information that is available in the US in the United States, and by the way, is visible in this application - at what price did the current owner purchase this house. Even if it was, for example, in 1985, the price will still be displayed. And the buyer will see that in 1985 the owner bought this house, say, for $ 250 thousand, and now he is selling for $ 1,5 million. It will also be indicated if the house has not been sold for a very long time and the owner has been shooting an ad for a while. In this case, the inscription “Off Market” will be next to the object and it is indicated whether the price has risen or decreased this time, ”says Arseniy.

It turns out that the purchase process is as transparent as possible, there are no behind-the-scenes deals or numbers. This moment reflects the fundamental difference between the American and domestic real estate markets. In the USA, it is impossible for the owner to hide the history of the house: all documents, sales history, transaction amount - everything can be easily recognized.

Applications are slightly different from each other. Trulia provides the opportunity to choose real estate depending on the district to which this or that school belongs. This is especially important for those parents who want their children to attend high-rated schools. Because sometimes it happens when houses standing literally across the road will belong to different schools. Zillow does not have the opportunity to choose a house for school, but there is another advantage.

“You can go the simpler way - immediately find a realtor who will look for a house. He needs to provide the entire list of his requirements. Then his work begins: according to the criteria provided, he compiles a list of objects and sends it to a potential buyer by e-mail. As soon as new suitable objects appear in his database, he immediately sends new letters. At the same time, each object also contains all the necessary information, including its history, ”explained Arseniy.

If you liked some house, then the realtor agrees on showing the object. You can come and see the house alone, or you can come to the so-called open house. In the second case, this is a general display of the house for all interested buyers, most often held on weekends. At the same time, realtors from the seller represent the house, and they, sometimes, arrange a small holiday: furniture is placed in the house, balloons are hung everywhere and they try to attract the attention of others. Moreover, often the furniture inside the house is fake - just so that the buyer imagines how everything can be arranged here. At the same time, first of all, neighbors come to take a look: it is important for them to find out how everything is arranged, what and how they sell in their area.

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Another feature of the Americans - at home they rarely do what is called, for themselves, no one tries to impress the guests with some individual chips in the design. If we consider the house as an investment, then the repair should be as versatile as possible.

“A house for an American is like a car: used it, sold it. And therefore, real estate should be saleble - "for sale." The buyer expects to see a certain set of rooms: a living room, a parent bedroom with its own bathroom and dressing room, a nursery, a dining area, a kitchen, an office, ”Danilov explains.

Фото: Depositphotos

“Americans rarely have cash, but Russians immediately come with money”

“Americans rarely have cash to buy a home - they usually use credit. But the visiting Russians understand that they cannot get a loan without a credit history, therefore they come immediately with money, ”Arseniy stated. - Americans before buying a house go to the bank and find out how much they can count on. The first payment for the house will be approximately 20% of its value. If you do not have such an amount, then the bank, in order to protect itself, will also obligate you to pay insurance to the interest on the loan!

There is no point in going to see a cottage without a letter from the bank, the seller is asked to show it first. “Just talk” is not an American option, no one will understand you. On the other hand, you can discuss a possible discount, sometimes sellers agree to this. And it happens the other way around: talking about a possible discount leads to higher prices. If the house is really good and has a favorable location, then an interested buyer can raise the cost by $ 5-10 thousand.

As soon as the parties agree, the buyer must make an advance payment of 2-5% of the value of the house. This is such an advance, after which an e-mail confirming the transaction is sent to the post office. In the USA, they have been using an electronic signature for a long time, so, as a rule, you don’t need to go anywhere.

“In the process of buying a house, the buyer does not see the seller. At the very end, when the keys are already being handed over, the realtor can show a photograph of the family who lived here before, but no more. For a buyer in the United States, it’s much more important to find out what kind of reputation the area has as a whole. It doesn’t happen that houses stood next to them for $ 500 thousand and $ 100 thousand - all houses in a particular area will cost in a specific range, for example, $ 470-520 thousand. That is why, by the way, there is no point in doing some kind of super repair in the cottage, because when it is sold it will still cost the same $ 520 thousand. No one will pay separately for repairs. Because people who have more money to buy a house will just go look for options in other areas that are more expensive, ”says Arseniy.

“As a result: all houses are very similar. Here you can again draw a parallel with the purchase and sale of a car. If you buy, for example, Toyota Camry, then there is no point in making crocodile leather seats in it, you will still sell it like Toyota Camry. Someone may pay a little bit, but not 2 times more, ”the Russian adds.

“When you buy a house, you just have to sign a ton of papers, be prepared for this”

“After making an advance, the house is placed“ under the contract ”, which indicates the amount of the advance and the period during which the buyer must inspect the house. After that comes a special licensed inspector. He checks the house for all indicators: how the wiring is done, how well the house is standing, how the water is made, the roof, etc. Literally after 2 days, a complete report is drawn up on the purchase object. For example, it will be indicated there that in the fence the third section is tilted to the left, the faucet does not work in the bathroom on the first floor, and on the second there are cracks in the ceiling, the roof will have to be changed after 2 years, the air conditioner is old. And, if after the purchase some significant flaw was revealed (for example, a roll or a drawdown of the foundation), then the seller must pay money to restore the house or you can cancel the transaction altogether, ”says Arseniy.

“But if the buyer refuses the transaction for some non-essential points, then the advance payment remains with the seller. Here you need to consider: if the report did not indicate any defect identified during the operation of the house, the inspector's company will pay a fine or repair through its insurance, ”adds Danilov.

When the transaction is confirmed, the buyer sends the documents to the bank. From this moment, the bank will conduct its own assessment of the object of sale (because in case of non-payment the house becomes the property of the bank, and it will need to be sold) and begins to study the borrower in more detail. The first thing they ask for is the amount of tax payments for the last 2 years. Then you need documents confirming the level of income for the last 2 years, a certificate with a recommendation from work, sometimes a certificate of income of other family members may be required.

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A personal credit rating will be taken into account. The highest indicator is 850, for buying a house this indicator should be higher than 750. You need to understand that the credit rating takes into account payment of the phone, electricity bills, and even the smallest purchases in the store. If the credit rating is low, the bank may refuse to grant a loan or raise interest rates.

“There is still a company assuring the process of buying a house. In our state, this Title is a separate private company with its own insurance and lawyers. She carefully checks the history of this house from its very appearance, prepares a special certificate for the house, in which everything from the first brick is painted. This is done so that after the transaction is completed, no one appears who says that this section was bequeathed to him by his grandfather in 1927, ”Arseny explains.

“In addition, be prepared for the cost of the house to pay about another $ 10 thousand (this includes taxes, various insurance, payment for Title services, etc.). If everything is in order, then documents will also be sent to e-mail, which also need to be signed. In general, when buying a house you will have to sign a ton of papers, so be prepared for this. I received about 100 emails for the entire duration of the transaction. I did not even know where the office of the real estate agency that represented the seller was located - everything was decided remotely. And after the deal it turned out that the realtors were talking to me from another city, ”Danilov said.

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