Fannie Mae Foundation: How to Buy a Home

Vocabulary
asking price
listed
commission
open house
community services
shoppers’ guide
home inspector
word of mouth

Purpose
To identify different ways of finding a home to buy.

Note: It will be useful to bring copies of the real estate ad section of the newspaper as well as some shoppers’ guides to class for this lesson.

Pre-reading activity
1. Ask learners to suggest ways of finding a home to buy. Write their ideas on the board.

2. Have learners read the headings on pages 29 and
30 and compare them with the ideas on the board. Ask learners to read both pages and circle any
new vocabulary. Explain the difficult vocabulary before having learners answer the comprehension questions.

3. Ask learners if they have ever looked for a home by using one of these methods. Ask them to describe their experiences. Find out if learners have anyone comparable to real estate agents in their native country. Reiterate the advantages of working with a real estate sales professional.

Spend some time explaining the real estate agent’s role. Point out that question 5 is a requirement. Agents must present all offers.

Comprehension check
Ask learners to do the comprehension exercise on this page. Discuss the responses with the whole class.

For the next class meeting ask some learners to bring in newspaper ads or shoppers’ guides that they find in their community.

Unit 2: Finding your dream home

Lesson 2: How to find the right home

	Word of mouth Tell all your friends that you are interested in buying a home. Someone may know of a house that has not been listed yet. They may know a house that is just right for you.
	“For sale” signs Go to a neighborhood you like. Look for “for sale” signs. If you find a house you like, call the telephone number on the sign. The telephone number will be for a real estate agency or the owner.
	Newspaper ads Read the classified ads in your newspaper. The ads will describe the house and may give an asking price. Sometimes the ads will list an open house. This means that you can go into the house and look around on a specified day and time.
	Shoppers’ guides Shoppers’ guides have pictures and descriptions of houses that are for sale. You can find these small magazines in supermarkets and at newsstands. They are usually free.
	Real estate agent A real estate agent can help you find a house. One way to find a real estate agent is by word of mouth. Ask friends if they can give you the name of someone they like and trust. Do not choose someone just because he or she speaks your native language. And remember, never sign anything you do not understand. The agent makes a commission or a percentage of the sales price of the house. The house sellers usually pay the agent after they sell the house. Sometimes it is possible to find an agent who works for the buyer. That means the buyer will pay the agent a commission or the buyer’s agent will split the commission with the seller’s agent.

A real estate agent can

1. Help you decide how much money to offer for a home.

2. Use your list of house requirements to get a computerized list of houses that are right for you.

3. Show you houses that meet your requirements.

4. Give you information about house prices and property taxes in a neighborhood. The agent can also tell you about the schools and other community services (for example, garbage collection).

5. Give the offer you make to the seller.

6. Give you information about mortgage lenders, professional home inspectors, and other professional services that you will need.

Comprehension check

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