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Columbus Ohio REALTOR®
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Kasey Welch, RE/MAX Capital Center, Inc.
3805 High Street, Columbus Ohio 43214
Cell: 614 348 7171 | Office: 614 447 1000
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For Buyers
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What are the
advantages of using a REALTOR® to help
me buy a home?
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Buying a home is certainly one of the
most rewarding experiences most of us
ever have; it's also one of the most
challenging. If you're buying for the
first time, the process may seem
overwhelming. And even if you've been
through it several times, every move is
different and presents new challenges.
One clear advantage of enlisting the
help of a REALTOR® is simply that you
don't have to go through it alone. A
good REALTOR® has the background and
skills to help you through each step of
the process, and make the experience of
finding, buying and moving into your new
home as smooth, quick and enjoyable as
it can be. Another advantage is that a
REALTOR® represents a valuable source of
information about market trends;
communities and neighborhoods; and
especially homes for sale throughout the
area. Remember, not every home seller
runs an ad in the local paper or puts a
sign up in the yard. In fact, many homes
actually sell before there is ever a
need to advertise them. The market
expertise a REALTOR® offers you is
augmented by access to complete,
regularly updated information about
every home listed by area sales
professionals through the Multiple
Listing Service (MLS). As you'll see in
the following questions, such
professional expertise and services can
be of considerable help throughout the
buying process.
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STARTING THE BUYING PROCESS
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Where do I begin
the process of looking for a home?
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The first thing you should do is to
begin focusing on what you're looking
for in a home. You can start by
establishing priorities in the following
three areas:
Location: Are you relocating
to a new town because of a new job or to
be closer to your current job? How will
the location of schools, shops, and
transportation affect your choice of
neighborhood?
Personal Tastes: How large of
a home do you need? What style of
architecture do you prefer? What type of
lot do you prefer? Depending on where
you move to, you may have a choice of
homes in dozens of styles, sizes, and
settings.
Budget: How much home can you
comfortably afford?
As you consider these issues, do a
little research of your own. Search
websites for ideas about home styles and
features. Drive through neighborhoods
that appeal to you to see what's
available. Read the real estate sales
data in the newspaper to learn about
current prices in the areas you're
considering. Talk to friends about the
features that you'd really like to have
in your home. The more knowledgeable you
become, the better your final decision
is likely to be.
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How do I find the
right REALTOR® to work with?
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First of all, you start by calling me
The key word here is "right." While
there's certainly no shortage of
REALTORS® to choose from, it's important
that you find one who can fully
understand your wants, needs and
individual tastes, and whose personal
and professional judgment you respect.
Today's buyers also have more choices
when it comes to choosing the REALTOR®
who can best represent them in a real
estate transaction. Until recent years,
virtually all real estate professionals
involved in a given transaction worked
for the seller. However, a growing
number of today's home buyers are
choosing to be represented by a "
buyer's agent," who represents the buyer
in contrast to the traditional
seller/sales professional relationship.
Many real estate companies throughout
the United States have both buyer and
seller agencies. A REALTOR® should
present you with a disclosure statement
before any working relationship is
created. That statement should explain
what a buyer's agent is and does, what a
seller's agent is and does, and what
dual agency means. It is very important
to remember that real estate firms are
governed by laws that can vary by state.
Disclosure laws also vary by state.
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How do I know how
much home I can afford?
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I’ve found that affordability is
probably the single biggest concern of
today's first-time home buyers. Given
the wide range of media coverage
regularly devoted to the issue, it's not
surprising that many young families
wonder how long it will take them to
afford their first home.
My advice: Don't sell yourself
short. Talk to your REALTOR®. A good
REALTOR® is committed to honestly and
responsibly working with you to
determine your affordable price range.
There are many financing options
available today, and some include low
down payments. Your REALTOR® will help
find an option that fits your budget,
and you may be surprised at just how
much home you can afford.
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RENTING VS. BUYING
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How does buying
compare to renting?
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Renting offers a lifestyle that's
nearly maintenance-free. That may appeal
to you, but consider that renting offers
you no equity, no tax benefit, and most
likely no protection against regular
rent increases.
If your rent has averaged $700 a
month for the last 10 years, you've
spent $84,000 with nothing to show for
it. Isn't it time you invested in
yourself instead of your landlord?
Several financing options hold
special advantages for first-time buyers
or families with limited cash reserves.
FHA-insured and VA-guaranteed mortgages
can minimize or even eliminate your down
payment. You may also consider a
lease-purchase agreement, or borrow cash
for a down payment from life insurance,
profit-sharing or a retirement account.
In addition to tax deductions you'll
likely receive that can partially offset
the cost of real estate taxes, insurance
and home maintenance, your home may
appreciate in value. If you purchase a
home that costs $100,000 and the
property increases in value only two
percent each year, your potential
appreciation in just two years is nearly
$4,200. And due to changes to the tax
code, subject to certain restrictions,
up to $250K (or $500K if married filing
jointly) of the profit you make when you
sell the house is tax-free as long as
you own the property for a minimum of 24
months.
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CHOOSING A COMMUNITY
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What should I
think about when I'm deciding which
community I want to live in?
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Good city services, nice parks and
playground facilities, convenient
shopping and transportation, a track
record of sound development and good
planning - these are just a few
considerations that are important to
many people when they choose a community
in which to live.
As for individual neighborhoods
within a village or city, there is no
better source of information than your
real estate professional. Sales
professionals know the people and the
communities they serve, and chances are
they can help you find a neighborhood
that really fits your family's needs.
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Where can I get
information about local schools?
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Again, a good REALTOR® is perhaps
your best source. They know where the
local schools are and can provide you
with valuable information about school
districts, including test scores,
extracurricular activities, bus service
and more. If you're relocating, a
REALTOR® may even be able to put you in
touch with teachers and principals when
you visit the area. And if you want to
do a little searching on your own, the
Internet may also be a good place to
start. My website has a special link to
neighborhood information, including
information about area school districts.
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How can I find out
what homes are selling for in a given
neighborhood?
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In most areas, home sales are a
matter of public record - you can get
all the information you want about
recent sales; including prices, transfer
date and purchasers on the county
auditor’s website.
An easier way is to ask your
REALTOR®. If you're interested in a
particular home, a sales professional
may be able to provide you with a list
of comparables - sale prices of homes in
your area that are roughly the same size
and age as the home you're considering.
Although there will certainly be some
differences between the homes - the
house next door may have an extra
bedroom, or the one down the block may
be older than the one you're looking at
- it's a good basis for evaluating the
seller's asking price.
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PROPERTY TAXES
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How can I find out
what my property tax bill will be?
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Usually, the total amount of the
previous year's property taxes is
included on the listing information
sheet for the home you're interested in.
If not, ask to see the seller's receipt.
Remember, tax rates change from year
to year, so the previous year's bill
should be considered simply as a
"ballpark" figure of what you would pay.
For a more precise projection, call the
local assessor's office for assistance,
or ask your REALTOR®.
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UNDERSTANDING LISTINGS
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If I'm moving a
considerable distance, is there any way
I can screen homes before I start
traveling?
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Yes. Today's Multiple Listing
Services (MLS) - which include as much
as 90 percent of the homes listed in any
given community - have made it
relatively easy for buyers to access
detailed information on homes for sale
practically anywhere in the country.
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HOME HUNTING TIPS
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When I start
visiting homes, what should I be looking
for the first time through?
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The house you ultimately choose to
call home will play a major role in your
family's life. A home can be an
excellent investment, but more
importantly, it should fit the way you
live, with spaces and features that
appeal to everyone in the family.
As you look at each home, consider
these important factors:
- Is there enough room for you now
and in the near future?
- Is the home's floor plan right
for your family?
- Is there enough storage space?
- Will you have to replace the
appliances?
- Is the yard the size that you
want?
- Are there enough bathrooms?
- How much maintenance and/or
decorating will you need to do right
away?
- Will your present furniture work
in this home?
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What do I need to
bring along when I'm looking at homes?
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Bring your own:
- Notebook and pen for note-taking
- Flashlight for seeing enclosed
areas
- Tape measure for checking room
sizes, clearances, etc.
- Camera (digital or 35mm)
Be prepared to investigate a little.
After all, you want to know as much as
possible about the home you buy. Sellers
understand that because their home is on
the market, it will be looked over
pretty thoroughly.
If you need to go back to a home for
another look, your REALTOR® will be
happy to schedule an appointment. Also,
be sure to ask any questions you have
about the home, even if you feel you're
being nosy. You have a right to know,
and the serious seller will not mind
making you feel more confident that
you've chosen the right house.
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What should I ask
about each home that I look at?
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As a rule of thumb, ask any questions
you have about specific rooms, features,
or functions. Pay particular attention
to areas that you feel could become
"problem" areas additions,
defects, areas that have been repaired.
And above all, if you don't feel your
question has been answered, ask until
you understand and are satisfied.
In most cases, your REALTOR® will be
able to provide you with detailed
information about each home you see.
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What should I tell
my REALTOR® about the homes I look at?
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Tell the REALTOR® everything you like
and don't like about each home you see.
Don't be shy about discussing a home's
shortcomings. Is the home too small for
your needs? Let the sales professional
know. Was the home perfect except for
the carpeting? Let the sales
professional know.
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How many homes
should I look at before I buy?
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There is no set number of homes you
should look at before you decide to make
an offer on one. That's why providing
the sales professional with as many
details as possible up front is so
helpful. The perfect home may be waiting
for you on your first visit. Even if it
isn't, the house-hunting process will
help you get a feeling for the homes in
the community and narrow your choices to
a few homes that are worth a second
look.
If you're looking in more than one
community, try to make the most of each
house-hunting trip. Stop by the local
Chamber of Commerce to pick up
promotional literature about the
community or ask the sales professional
for welcome kits, maps, and information
about schools, houses of worship, and
recreational facilities. Also, be sure
to take along a camera and snap some
pictures of all the homes you're
interested in. That will make it easier
to remember and reach a decision.
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HOME HUNTING TIPS
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When you find a home you may be interested in
buying, make sure the REALTOR® asks the owner the
following questions:
- How much money do you pay for monthly
utilities?
- Have you had any problems with water or
dampness in the basement?
- Are there defects or problem areas that
need to be fixed right away?
- How old is the furnace and the central
air conditioning system?
- How old is the roof? Have you
experienced any leaking?
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APPRAISALS, INSPECTIONS,
LEGAL, INSURANCE
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How do I know I'm
getting the best value for my money?
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A professional appraisal is the best
way to tell if a home is priced fairly.
A real estate appraisal is an unbiased
opinion of a property's value based on
its style and appearance, construction
quality, usefulness, and other factors,
including the value of comparable
properties nearby.
When you apply for a mortgage, the
lender will have a professional real
estate appraiser perform an appraisal of
the property.
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I'd like to have a
professional look at the home before I
buy it. What does a home inspector do?
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For your own safety, and to make sure
you're getting your money's worth in the
home you choose, using a professional
home inspector is highly recommended. A
home inspector will check a variety of
things such as your home's plumbing,
heating, cooling, and electrical
systems, and look for structural
problems like a damp or leaky basement,
etc.
Usually, you call an inspector
immediately after you've made an offer
on a home. However, before you sign any
written offer, make sure (or have your
attorney make sure) that it includes an
inspection clause, which says that your
purchase obligation is contingent on the
findings of a professional home
inspector.
Your inspector will not tell you
whether he or she thinks the home is
worth the money you are offering.
Rather, the inspector's job is to make
you aware of repairs that are
recommended or necessary. A seller may
be willing to renegotiate a price to
accommodate needed repairs, or you may
decide that the home will take too much
work and money. A professional
inspection will help you make an
informed decision.
In choosing a home inspector,
consider one who has been certified as a
qualified and experienced member by a
trade association. Your real estate
professional can refer you to qualified
inspectors in your area.
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Should I be
present during the inspection?
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Yes. It's not required, but it is
very much to your advantage. You'll be
able to clearly understand the
inspection report and know exactly which
areas need attention. Plus, you can get
answers to many questions, tips for
maintenance, and a lot of general
information that will help you when you
move into your new home. Most
importantly, you'll see the home through
the eyes of an objective third party.
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Are there any
other inspections I need to have done?
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In addition to the overall
inspection, you may wish to have
separate tests conducted to check for
insects, the presence of radon gas, and
the quality of drinking water, to name a
few. Talk to your REALTOR® for
information about these tests and
companies in the area that perform them.
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Do I need to use a
lawyer to buy a home?
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Because the legal contracts and other
paperwork involved in buying a home are
complex and can be confusing to the
general public, many people prefer to
work with an attorney.
Your attorney will review contracts
and make you aware of special
considerations and potential problems,
and can accompany you to the closing to
help make everything go as smoothly as
possible.
If you don't know a real estate
attorney, ask your REALTOR® for help.
Sales professionals work with many legal
professionals every month and can
provide you with the names of several
attorneys in the community.
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Do I need to talk
to my insurance agent?
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Yes, and the sooner the better. Your
REALTOR® can help you with this, but
most insurance agents have a lot of
experience in working with homeowners
and can offer useful tips about
homeownership, particularly regarding
home safety and keeping your premiums
low.
Once you've found a home, work with
your insurance agent to develop a
homeowner's policy that meets your
individual needs. You'll need to bring
evidence of a fully-paid policy for your
mortgage lender when you come to
closing. Make sure you take this step
with your insurance provider as early as
possible; in many locations you'll have
trouble assuming title if you don't have
proper insurance in place.
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MAKING AN OFFER
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When I've found
the home I like, how do I make an offer?
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When you've found a special house you
want to call home, you'll probably feel
excited and a bit nervous. Let the
REALTOR® know you're ready to write an "
offer to purchase" - a written document
that declares how much you are willing
to pay for the home provided that
certain conditions are met. Because it's
a legally binding contract that you will
sign and date, it may be a good idea to
have a lawyer review it, within the
grace period noted in the contract.
Your offer should have a time limit
for the seller to accept it, reject it,
or make a counter-offer. If a
counter-offer is made, you will have
some time to respond. Often, several
offers go back and forth until an offer
is accepted, or one party decides to end
negotiations.
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How do I determine
the amount of my initial offer?
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There is really no rule to use in
calculating an initial offer. Naturally,
the buyer wants the best value and the
seller want the best price, but
negotiations can be influenced by many
factors, such as a seller who may be
changing jobs and wants to sell quickly,
or a buyer who is set on a specific
home.
After you've looked at the home's
features, asked questions, checked
comparables, and talked about it with
your sales professional, you should have
a good idea of what the home's value is
in the current market. Consider what you
can afford, and make an offer that you
consider to be fair.
Most buyers and sellers negotiate on
price, with both sides "giving" a little
until both agree.
At that point, you typically will
begin the process of arranging for an
inspection and applying for a mortgage.
See the "Financing" section of this book
for more information.
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What is
"earnest money" and how much do I need?
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When you sign an offer to purchase,
your REALTOR® will ask you for "earnest
money." This refers to a monetary
commitment that shows you are serious
about wanting to buy. There is no
specific amount of earnest money
required in the State of Ohio.
This money will be held in a special
escrow account. If your offer is
accepted, your earnest money will be
included as part of your down payment.
If your offer is not accepted, you'll
get back all your earnest money. But
keep in mind that if you back out, you
may forfeit the full amount.
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Is there any way I
can protect myself against emergency
repair bills in my new home?
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Yes. Home warranties offer you
protection against many potentially
costly problems not covered by your
homeowner's insurance. Such warranties
have become increasingly popular in
recent years, and for good reason. The
coverage can save you thousands in the
event of a major mechanical breakdown at
a time when your cash reserves have been
depleted by your down payment and moving
expenses.
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CLOSING PROCEDURES AND MOVING
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There's so much to
remember before I close. What do I have
to do?
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Your sales professional can help you
with many of these considerations:
- Are all the necessary
inspections complete?
- Are all the required repairs
complete?
- When will you conduct your final
walk-through inspection?
- Is your attorney satisfied that
title to the property is clear (no
one else has a claim on it)?
- Have you confirmed a date, time,
and place for your closing?
- Who will conduct the closing?
- Is your insurance policy paid
and ready to go into effect the day
you close? You'll need a receipt for
proof.
- What form of check should you
use (and who should it be made out
to) to pay for the closing costs?
- Has your closing sales
professional told you the closing
amount?
- Do you have receipts for the
items you have already paid for,
including your deposit and
inspection fees?
- Bring your checkbook to cover
any last-minute extras that might
have been overlooked.
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What should I look
for on my final walk-through?
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In most cases, you'll be given the
opportunity to inspect the home
immediately prior to closing. At this
time, it's important to check on any
work the seller agreed to have done in
response to your initial inspection. You
should also carefully check the
condition of walls and ceilings from
which window treatments, pictures, or
any other attached furnishings have been
removed. If you find any problems, don't
hesitate to bring them up at the
closing. It's the seller's
responsibility to correct them.
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What will happen
on closing day?
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- The lender's agent will ask for
your paid home insurance policy.
- The agent will list the
adjustments. These include the money
you owe the seller (the remainder of
the down payment; prepaid taxes) and
what the seller owes you (unpaid
taxes; prepaid rent).
- You will sign the mortgage. This
gives the lender legal rights to the
property if you don't make your
payments.
- You will sign the mortgage note
(the promise to repay the loan in
regular monthly payments).
- You will get title from the
seller in the form of a signed deed.
- The lender's agent will collect
the closing costs from you and give
you a settlement statement of all
the items you have paid for.
- The deed and mortgage will be
recorded in the town or county
Registry of Deeds.
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Is there anything
I should do immediately after closing?
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The first thing you'll want to do is
have the locks changed. Also, put your
deed and other important paperwork from
the closing in a secure place,
preferably a safe deposit box. Even
though it's all on file with the county,
it's smart to know where your copies are
and have access to them at all times.
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Should I move
myself or use a moving company?
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In almost every case, you can save
yourself time and energy by using a
reputable moving company to help you
move.
Ask your REALTOR®, friends, and
co-workers for recommendations, then get
estimates from several companies. Don't
choose a mover based on price alone
consider the reputation and
professionalism of the company, too.
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