Chapter 7 – The Finances of Housing Name_______________________________
Section 7.3 Part 1 – Buying and Selling a Home (thru Pg. 218)
1. List the 5 steps in the home buying process.
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2. What does equity mean when talking about houses?
3. Using the different types of housing on Pg. 210-212, fill in the blanks with the appropriate term.
· The most popular type of housing in the United States is the __________________________________.
· Because a single-family home provides the most privacy of any type of housing, it is often the most
__________________________.
· Multiunit dwellings include duplexes and townhouses. A duplex is a single building divided into living spaces for _________ families.
· A townhouse is one of many single-family units attached to other units, but each unit has its own __________________________.
· A ____________________________ is one of a group of apartments or townhouses that people ______ instead of rent.
· Condominium owners pay a monthly fee to cover the cost of __________________________________,
_____________, _________________________, and _____________________ for the building and its common spaces.
· Cooperative housing is apartment style living in which a building contains a number of units owned by a ______________________________________. Members pay a monthly fee which covers their rent and the operating expenses of the organization.
· Prefabricated homes are manufactures and partially assembled at a factory. They are cheaper than other single-family houses because _________________________________ of their pieces and partial assemble helps keep costs down.
· Compared with other housing choices, mobile homes are relatively _____________________________. However, they are not as well constructed or as safe as other types of housing, and do not _________________________ in value at the same rate as single-family homes.
4. What are three things you should consider when selecting a location for a home?
5. What are four benefits to having a real estate agent when purchasing a home.
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6. Why is it important to have a home inspection before buying a home?
7. What is an appraisal?
8. What are six questions you should ask yourself when determining the price of a home?
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9. Once a buyer and seller agree on a price, they must sign a purchase agreement or contract. Most of these
purchase agreements are conditional, which means what?
10. After agreeing to purchase a home, you will have to most likely put down a down payment. A down
payment is usually 10 to 20% of the sale price. What are the most common sources of down payments?
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11. A mortgage is a long-term loan extended to someone who buys property. The holder of the mortgage pays
the house seller and the buyer must then repay the mortgage holder (bank, credit union, mortgage
company). The buyer pays back the mortgage in monthly payments usually over a period of how many
years?
12. With a mortgage the home serves as collateral so that the buyer will repay the loan. What happens if the
loan is not repaid?