This first time home buyer presentation is brought to you by Metro1 Realty in Louisville Kentucky. It covers the main aspects of home buying.

1. Buying your
First Home

2. Metro1 Realty
Renting v Ownership – Rule of 72
Benefits of Ownership – Case Study
Financing
House Hunting
Negotiations
Contract to Closing Flow Chart
Home Owner Protection
Action
Contact Information
OVERVIEW

3. Residential / Commercial
Full Service Agency
Kentucky and Indiana
Buyer Program
Availability
www.Metro1Realty.com
ASSOCIATIONS AND ACCESS
COMMITTED TO
EXCELLENCE

4. RENTING
VS
BUYING
Fire Your Landlord !
FACT: Your rent will increase.
The above does not take into account increasing rent rates due to ever
increasing cost of labor, material, real estate taxes and a steep shortage
of affordable rental units.
FACT: Your home will double in price.
How long that will take will depend on the rate at which your
market is increasing and the type of house you choose to buy.
Rate # Of Years Year Purchased Year its Doubled
6% 12 2014 2026
5% 14 2014 2028
4% 18 2014 2032
Buying a home is the best investment you’ll ever make!

5. Check out
these
benefits!
BENEFITS OF OWNERSHIP

6. DOUBLE
YOUR
These 2 slides compare closed sales of 3 bed, 2 bath homes in zip 40245 in the
years 2014 and 2019.
The increase over 5 years was 25%, which equals a compounded interest rate of
4.61% per annum.
According to The Rule Of 72, a home purchased for $219,367 in 2014 will double in
value to $438,374 by 2030 (15.6 years) if it increases by 4.61% per year.
2010
2019
The above example does not imply that that rate of return for homes in 40245 will
increase at the same rate until 2030. There will be spikes and dips. And of course
homes in other zips in Louisville will rise and fall at different rates.
Nevertheless, it is an absolutely true that home prices increase significantly over
time (as do rent rates!) and that not only does a home provide stability and reflect
you and your lifestyle, it is also a fabulous investment.

7. Why it’s Important
Which is Better
Standard
Particular
PITI
 Principal
 Interest
 Tax
 Insurance
 Home
 Mortgage (80/20)
Realtor / Loan Officer
 Grant
 100% Financing
 Down Payment Assistance
 Government Agencies
 Non Profit Organizations
 Seller Concessions
 Closing Costs
 Rate Buy Down
 Prepaid Items
Prequalification Letter
SMART
FINANCING

8. On Your Own
Internet
Drive-bys
Cost
With A Realtor
MLS
Professional Lists
Check Daily
Appointment Coordination
Client / Customer
Dual Limited Agency
Exclusive Buyer Agency
Procuring Cause
HOUSE
HUNTING

9. Get the Facts – Comps (CMA)
Past Sales
Current Listings
Condition
Bathrooms
Garages
Square Feet (15%)
More….
Other Factors
The Other Party
Negotiation History (New Homes)
Competitive Bidding
 Price
 Days to Close
 Possession
 Repairs
 Termite Treatment
 Good Faith Deposit
 Terms
NEGOTIATION
S
You will get what you negotiate
Not what you deserve

10. CONTRACT

11. CONTRACT
TO CLOSING
RESIDENTIAL SALES CONTRACT
CONTINGENCIES

12.  Home Insurance
 Credit Score
 Cost
 Deductible
 Home Warranty
 Cost
 Deductible
 Owner’s Title Insurance
 Mortgage Insurance
 Home Inspection
 FHA “Inspection”
HOME OWNER
PROTECTION

13.  Meet with Lender
 Become Prequalified
 Meet with Realtor
 Establish Home Criteria
 Receive Daily Emails
 View Homes
 Offer Contract
 Close: 15 – 45 Days
PROCESS

14. NOTHING HAPPENS UNTIL YOU ACT!
502-439-2826 |Neil@Metro1Realty.com
Metro1Realty.com