Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved1 Introduction Homeownership is a corner stone of the “American Dream ”. Every year several million families go through the process of buying a home. For many of them, a home is the largest investment they will ever make. The process of buying can be stressful, intimidating and risky unless you are truly prepared. Buying a home involves thousands of dollars, takes time and represents a long-term financial obligation.
Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved2 Objectives You should be able to do the following after completing this lesson. Explain why homeownership is integral to achieving the “American Dream” Review the four primary types of homes Describe common features that are found in homes today Discuss why the median price is more representative of what average people pay for a home Summarize the factors that affect the selling price of a home Identify the factors that determine home appreciation Define the key terms introduced in this lesson
Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – Types of Homes How many households are in the US What determines the type most appropriate for you What the costs and responsibilities are for different types of homes In this section, you will learn What the primary types of homes are How many households are homeowners and renters Types of Homes Example You will run the following Interactive Example
Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – The Typical Home How the typical home has changed over the years What features are available in most homes today In this section, you will learn What the characteristics of the typical home today are How the typical home and a luxury home are different
Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – The Attraction of Owning a Home What benefits homeowners get that renters don’t How homeownership helps build personal wealth Why a home is still considered a good investment How and why homes typically increase in value What tax advantages come from owning a home In this section, you will learn What you must do to be able to buy a home
Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – Average vs. Median Home Cost How the value of a home is typically shown The difference between the average and median costs How to estimate the average and median cost In this section, you will learn What the average cost of a home in the US is What the median cost of a home in the US is Which price is more representative of what the average person actually pays
Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – New vs. Existing Home Prices What determines the selling price of a home What the median cost of an existing home is in the US Whether new or existing homes cost more In this section, you will learn What the median cost of a new home is in the US
Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – Fair Market Value What the Fair Market Value of a home is What an appraiser does How the Fair Market Value of a home is determined What an appraisal is and what it is used for In this section, you will learn Median Housing Cost Exercise You will run the following Interactive Exercise
Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – Home Values Why a home is still considered a good investment What annual appreciation is What the average annual appreciation is for homes Whether all homes increase in value What factors determine if a home will increase or decrease in value each year In this section, you will learn
Lesson 11.1 Home Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved10 Discussion Questions What does it mean to be “upside down” on a mortgage loan? What is a “housing bubble”?