The Listing Agent Listing agents represent sellers - work to get them the very best possible price in the sale of their home. You will see their names on many FOR SALE signs and in magazine, newspaper and internet advertising. You are best represented by contracting with an Accredited Buyers Agent (ABR) - at no fee to you - who will get information from the listing agent for you. Just jot down addresses, MLS numbers, or other identifying information and give it to your ABR.
New Home Tract Salespeople These agents work strictly for the builder in the same way that listing agents work for the sellers. They will be at the model homes in the new home tracts and are licensed to sell only that particular builder's homes. They are very friendly and helpful - to a point. But remember, they are looking out for their client - the builder/seller - and are not looking out for your best interests. If you sign a registration at a new home sales tract, you are agreeing to have no representation. But the seller has paid representation. Insist on being represented by an Accredited Buyers Representative! It normally costs you nothing and you deserve your own representation. If you have any questions at all - just ask me.
Accredited Buyer Representation (ABR) I work for only you, the Buyer, and at no cost to you! I work on your behalf when you buy a home, new or resale, My company will receive 50% of the commission paid by the seller. Both the listing and new home agents are highly motivated to show you a limited selection of homes - those that they represent. I am motivated to show you the very best possible home to fit your needs and desires with no need to "push" you toward a particular home.
Your Budget Before you begin shopping, you need to know how much you can spend. If you don't already have a lender, I'll give you some names to choose from. You then will make an appointment to get Free Prequalification and finally "pre-approved". This means that you are eligible to borrow the money you need to buy your new home. This meeting will take about an hour of your time. Your loan officer will check your credit and employment and send you a letter of pre-approval in a few days. Now that was easy!
You know what you can spend and now you're ready to shop!
Finding Your Dream Home Congratulations! You've selected your ABR, and been pre-approved for a loan! Before we get in the car, I want to know as much as possible about your needs and wants. We'll discuss your "Wish List" and I'll help you with information about neighborhoods, schools, shopping and home values. We'll spend some time discussing how you and your family actually will live in your new home.
- What area of the city is best for you? - What size do you require? - How many bedrooms? - How many bathrooms? - How may parking spaces do you need? - What size yard do you need? - Are you looking for a new or resale home? - Would you like a pool? - Do you want a 1 or 2 story home? - When do you want to take possession
You may not know the answers to all these questions until we've looked at a few homes.
The Home Search Using the information you have given me, I will begin to search through all homes that are listed in Multiple Listing (MLS). We can meet at my office and do some shopping and eliminating on the computer - or we can discuss possible homes on the phone or e-mail and choose which ones you'd like to see. I'll provide you with an MLS Area Map and pertinent features of the homes such as:
- Square footage - Number of bedrooms and bathrooms - Garage size - Lot size - Location and addresses - Year built - Price
I will give you directions and information on the homes you choose. If you wich, you can then drive around and preview the neighborhoods and once you have selected a few of your favorites, I'll set up appointments for you to view the inside of the homes.
When considering a home purchase, it is wise to check the home thoroughly yourself. Try to think of everything you can - and I'll help too. You may want to take notes and record details of anything you can see that needs changing, repair or special maintenance. Of course you will have a professional home inspection when you select your home which will included these items - and more:
- Try all lights and switches - Turn all faucets on and off, flush toilets and check water pressure - Test all stove burners - Turn the oven on bake and broil - Test the garbage disposal - Run the dishwasher - Check for structural cracks and signs of water damage - Open and close windows and doors - Check insulation and ventilation - Age and condition of the furnace, air conditioner and water heater
The time to inspect and note any defects you want corrected by the seller is before we write the contract and start negotiations and need to be included in the offer to purchase. The contract will be contingent upon your approval of the home inspection. If a major problem is found on the inspection, we can ask the seller to fix it. If the seller won't, you can decide if you want to deal with the problem and if not, you will not lose your earnest money and will not be bound to go through with the purchase. We'll look for another house. We'll also have a final walk-through before you sign your closing documents to be sure that all conditions have been met.
The Purchase Contract We will meet and complete your Purchase and Sale Agreement for the property you want. I will provide sold comparables to protect you from paying too much as many homes are over-priced.
This contract is extremely important because it states how much you want to pay, how you will finance your home and what you want the seller to do for you before you complete the purchase.
The Purchase and Sale Agreement is where we put in writing everything you need when you buy, such as
- Who will pay for the appraisal - Pest and structural inspections - Financing details - When you want to move in - What you are offering to pay for the home - What is included in the purchase (drapes,landscaping, etc) - Tax and fee prorations - Will the seller pay for a one year home warranty
You will give me a check for the amount of the earnest money. This is usually at least $1,000, depending on the sales price of the house and the seller requirements.
Before writing an offer, I will calculate and explain all closing costs so that there will be no last minute surprises.
After we have completed the contract, I will call the seller's agent and make an appointment to present your offer. Since you are pre-approved, the seller will know that you can actually afford the home and your offer will be stronger than an identical offer from someone who is not pre-approved.
Negotiating With The Seller Negotiation begins before we get started looking. A strong position is enhanced by getting pre-qualified for a mortgage. Better yet making the effort to become pre-approved will maximize your ability to strike a deal most favorable to you.
When we find the right home, I will:
- Compare prices of similar homes sold in the last 6 months - Help you compare it to any other homes you've looked at - Arrange inspections to evaluate its condition and assess the amount of work it needs - Determine how long it's been on the market and attempt to discover why the Seller is selling, and if the price has been reduced - Affect a strategy using time, price, and terms to your advantage.
I will draw from my years of experience in negotiating real estate transactions always with your best interests in mind.
Whether it's starting with your best offer, saving room to maneuver, compromising, or making concessions to the seller's counter, I will present you with the objectivity to help you make a wise decision.
If the seller accepts your offer, I will get the Seller's Real Property Disclosure from the listing agent.
Closing and Possession Escrow is the process where all paperwork is collected, checked for accuracy and the final documents are prepared for closing. The escrow company will
- Arrange for title insurance report and policy - Pay off existing loans, if any - Adjust taxes and insurance between you and the seller - Ensure that hazard insurance has been obtained - Supervise the signing of all documents at closing - Record the new deed on the property so that you are the new owner - Disburse the money and documents as needed
Your lender will deliver your loan documents to escrow. Your escrow officer will prepare the final documents for your signature and calculate how much money you will need when you come in to sign your papers. If your lender or escrow officer need any final paperwork, they will let you know.
Your escrow officer will let you and I know when to come in to sign. You will need to bring a cashier's check for the correct amount.
The seller will usually sign the documents first. I will be present to explain and answer any questions you have when you sign. When you have finished signing, all the signed documents are returned to the lender for review. If everything is OK, ther lender will fund your loan. Funding the loan usually requires 24 to 48 hours.
The title company records the deed of trust. Escrow is "closed". You are now the legal owner. I will arrange for you to receive your keys.
Congratulations! You survived! You are now a homeowner!
