Step 3: Closing the deal!

Correct! Don’t assume that your condo insurance covers your personal property – it usually doesn’t. You’ll need to get a policy for your personal property on your own. Check with your condo association for information on anything else the association’s insurance doesn’t cover.

Incorrect. Don’t assume that your condo insurance covers your personal property – it usually doesn’t. You’ll need to get a policy for your personal property on your own. Check with your condo association for information on anything else the association’s insurance doesn’t cover.

Correct! Oftentimes, the listing agent will choose the escrow company, but you may want to do this yourself instead. Here’s why: escrow companies that are owned or controlled by the listing agent’s real estate company aren’t always as “independent” as they should be. They tend favor the seller’s side of the transaction (who brings them lots of business). They also tend to add extra fees that seem unreasonable (perhaps due to the lack of competitive pressures). It’s better to specify your own escrow company.

Incorrect. Oftentimes, the listing agent will choose the escrow company, but you may want to do this yourself instead. Here’s why: escrow companies that are owned or controlled by the listing agent’s real estate company aren’t always as “independent” as they should be. They tend favor the seller’s side of the transaction (who brings them lots of business). They also tend to add extra fees that seem unreasonable (perhaps due to the lack of competitive pressures). It’s better to specify your own escrow company.

Correct! On top of your regular policy, it’s wise to also invest in a $1,000,000 liability policy. This will protect you from claims against your home, e.g., in case your roof collapses and injures a guest who was visiting you. In these days of “generous” juries, you can never be too careful. Fortunately, these policies aren’t that expensive.

Incorrect. On top of your regular policy, it’s wise to also invest in a $1,000,000 liability policy. This will protect you from claims against your home, e.g., in case your roof collapses and injures a guest who was visiting you. In these days of “generous” juries, you can never be too careful. Fortunately, these policies aren’t that expensive.

Correct! Sellers typically tell utility providers the date they would like utilities discontinued under their name, and the more “thoughtful” among them will provide utility providers with your contact information.

Unfortunately, it’s equally likely that such a thing won’t even cross the seller’s mind.  So, it better cross yours instead. If utility companies actually turn off service, you can bet it will be a few days until they can get them turned on again. Worse yet, there may be additional costs for that service.  Handle the situation with plenty of time to spare, however, and you’ll have no worries.

Incorrect. Sellers typically tell utility providers the date they would like utilities discontinued under their name, and the more “thoughtful” among them will provide utility providers with your contact information.

Unfortunately, it’s equally likely that such a thing won’t even cross the seller’s mind.  So, it better cross yours instead. If utility companies actually turn off service, you can bet it will be a few days until they can get them turned on again. Worse yet, there may be additional costs for that service.  Handle the situation with plenty of time to spare, however, and you’ll have no worries.

Correct! One thing insurance companies won’t consider when determining the full replacement cost of your home is the purchase contract. This includes land. Nor will the insurance company arrive at any conclusions based on the amount of your mortgage. In order to determine what it would be obligated to replace in case of a total loss, your insurance company usually uses the appraisal.

Incorrect. One thing insurance companies won’t consider when determining the full replacement cost of your home is the purchase contract. This includes land. Nor will the insurance company arrive at any conclusions based on the amount of your mortgage. In order to determine what it would be obligated to replace in case of a total loss, your insurance company usually uses the appraisal.