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Says a guy who clearly doesn't understand the implications of what time value of money really means. Do you even realize that overall house price levels generally goes up only because of inflation? Go ahead, keep sticking your head in the sand.
assuming that your assertion is correct and real estate values are only keeping up with inflation, what do you do if you've been a renter all these years? higher real estate values will cause rents to be higher and as a renter you don't have ownership as a hedge against inflation.
The reality is that you are correct real estate does indeed track inflation but in the last 10+ years, excepting the last 2, real estate values doubled and in some case tripled, far out pacing the rate of inflation.
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Now what got to me in this whole deal is that great scam called Title Insurance. I pay for a search and then after the search have to pay 5 times more for this so called insurance in case they missed something?? I asked my lawyer what the hell does title insurance cover? I am paying cash with no mortage so I wonder do I need it???
First, congrats to you, and I hope it all works out. And you have absolutely the right attitude. WHo cares if the guy you are buying from makes a profit. You got the house you wanted at a price you were willing to pay. Well done.
Now, as to the title insurance. It doesn't matter that you are paying cash & that there is no mortgage. The insurance protects YOU in the event someone else claims they have some right to the house. (I'm not saying the cost is justified, just explaining what it does.) If a lawsuit was filed before the sale and is later decided against the guy you bought the house from, as an example. Or if some handwritten bill of sale turns up, having been found in an attic someplace, and the progeny of some long dead riverboat gambler says he is the rightful owner of your house. Stuff a title search likely wouldn't find.
by the way do I need to spend 1250 on this so called title insurance?? I mean I pay 250 for the search, why do the search just give me the insurance or vice versa. I don't understand. How many people bought a house and had some come and claim its theres? Also dont towns keep records, and something called recording fees?? I mean I never heard of anyone ever having to use title insurance???? Am I wrong?
I just read your answer and understand, I just have a hard time with this one!!! Thanks
by the way do I need to spend 1250 on this so called title insurance?? I mean I pay 250 for the search, why do the search just give me the insurance or vice versa. I don't understand. How many people bought a house and had some come and claim its theres? Also dont towns keep records, and something called recording fees?? I mean I never heard of anyone ever having to use title insurance???? Am I wrong?
on an initial purchase title insurance should be bought, it protects you from many things. The real scam is title insurance on refinancing, in my example I owned my 50 year old home for 15 years, plenty of time for any claims to be made, when I refinanced they forced me into buying that insurance again.
by the way do I need to spend 1250 on this so called title insurance?? I mean I pay 250 for the search, why do the search just give me the insurance or vice versa. I don't understand. How many people bought a house and had some come and claim its theres? Also dont towns keep records, and something called recording fees?? I mean I never heard of anyone ever having to use title insurance???? Am I wrong?
I just read your answer and understand, I just have a hard time with this one!!! Thanks
Understandably.... but think of it this way. $1250 for title insurance.... vs (if something did come up) the entire cost of your home.
Which would hurt more? While it should be unnecessary, because the cost of the insurance should really be factored into the search... and be considered "assurance" instead, as in a guarantee...
Its a small price to pay for what it could potentially cost you.
APV, boy what a scam!!! Honestly does anyone know of any one who had to use title insurance!! I mean lets say some river gambler writes a note of sale, so then we go to court. I show deed, I show closing crap, I show recording fee, I show I paid taxes, I show that I legally got a lawyer to do this closing how is this going not make my case.
And what does that title Insurance actually pay for? Will it buy me a new property if I have to give it back to the rivergambler. What does the policy read and what do they offer?
APV, boy what a scam!!! Honestly does anyone know of any one who had to use title insurance!! I mean lets say some river gambler writes a note of sale, so then we go to court. I show deed, I show closing crap, I show recording fee, I show I paid taxes, I show that I legally got a lawyer to do this closing how is this going not make my case.
And what does that title Insurance actually pay for? Will it buy me a new property if I have to give it back to the rivergambler. What does the policy read and what do they offer?
it covers you for any liens that were not found, it covers you if the deed showing your property lines are incorrectly drawn, it covers you if your home was built on an existing easement, it is a prudent thing to buy, but realize this, it's probably (my screwy numbers) less than 1 in a million home transactions that the insurance companies ever have to step up and pay a settlement because of an error. Like most other insurance it's a scam
Got an idea, lets walk thru Saddle River or Alpine pick the best house and write a hand written note, say my Applician granny had a cabin and I own the land !!! I am bound to get lucky and find some laid off executive who did not get title insurance HA HA!!!
Got an idea, lets walk thru Saddle River or Alpine pick the best house and write a hand written note, say my appaclian granny had a cabin and I own the land !!! I am bound to get lucky and find some laid off executive who did not get title insurance HA HA!!!
you'll need some very good proof of ownership to pull it off
Alright I get the damn title insurance, they have to pray on my fears so be it. But let me say I think its a waste and a scam I will get it with protest.
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