Tips
for Buyers
Perhaps
you are a first time buyer,
or maybe you are buying
your fifteenth home, regardless
of the circumstances I
will be your guide during
the entire process.
Buyer
Agency
More real estate
sales jargon … what
buyer agency means is
that I represent you and
not the seller. I work
on your behalf to obtain
the best price and terms
for your home purchase.
A few points of buyer
agency you may want to
remember:
As
your agent, I will represent
your best interests, not
the sellers’.
Any
information you render
to me will be confidential,
neither the seller nor
the sellers’ agent
will be privy to any personal
information that you give
me.
You
do not pay me, the sellers’
agent pays me. We just
get the pleasure of each
others’ company
until we find you the
right house!
Pre-qualifying
There are so
many loan programs and
so many lenders that I
cannot possibly pre-qualify
you the way an experienced
lender can. It is imperative
that you speak to a reputable
lender prior to the home
search. Why? First, to
establish your buying
power. Second, to find
out what loan program
best suits you and your
family. And third, a letter
from the lender stating
that you are pre-qualified
is always a plus when
you present an offer to
a seller stating that
you are indeed pre-qualified.
If you need any suggestions
as to where to acquire
financing, I have a list
of tried and true lenders
who have handled other
buyers’ loans swiftly
and professionally.
Finding
Your New Home
Essentially, you are hiring
me to scour our database
and my network of homeowners
who have decided to market
their property without
the help of a real estate
expert. You specify what
type of home you want,
number of bedrooms, bathrooms,
what school district your
children need to be in
[if applicable], anything
that you deem pertinent
to your housing needs.
In order for me to maximize
my services, please fill
out the Dream
Home Finder Form and
I will begin the search
for you today!
I
am of the opinion that
you want me to work for
you. That said, I will
not direct you to a web
site to do your own search
then have you contact
me after you have driven
by the listings to see
if they are acceptable.
The popular sites that
you may go to for casual
searches DO NOT include
everything in our MLS
database. Why would you
need my services if I
am going to direct you
elsewhere? The way I feel
about it is we are on
this journey together.
I need to see what you
like and what you do not
like; the power lines,
the ugly fences, the gorgeous
landscaping, a railroad
track, anything that will
trigger you to either
want to see a property
or nix it. Leave the field
work to ME!
Time
to Present The Offer
The time will
come when we find the
house that suits your
needs. At this point,
it is time for me to write
the offer to purchase
on your behalf. I will
help you determine a price
by looking at comparable
sales and active listings
similar to the house you
have decided to buy. We
will then go over the
documents necessary to
present the offer to the
sellers’ agent along
with a monetary binder
and any addenda that need
to be included with the
offer. A few points to
consider:
If
you are going to negotiate
a significant percentage
of the sales price, it’s
usually wise not to ask
for a lot of other terms
and conditions; the seller
may wince, take the offer
as an insult, and counter
your offer with something
ridiculous.
Be
sure to be pre-qualified
and present your letter
of pre-qualification whether
the seller asks for it
or not. The letter always
solidifies your standing.
Always
remember that the monetary
binder [“earnest
money check”] is
indeed deposited. It does
not float about in some
real estate abyss somewhere;
it is cashed as soon as
your offer is accepted
by the seller and deposited
into the sellers’
agents trust account.
If
the seller is not offering
a warranty, be sure to
make it a condition of
the offer. A warranty
essentially means less
hassle for you, for the
seller, and for everybody
involved should there
be a problem with plumbing
or the dishwasher or any
of the major systems or
appliances should anything
malfunction.
Property
Inspections
Now that we have
found the house and we
have a signed accepted
offer, we have to make
sure the house is structurally
sound prior to your calling
it home. Inspections are
the buyers’ responsibility
and you can either pay
for the inspections at
the time of inspection
or at closing.
If
you have secured financing
to purchase your new home
your lender may require
that certain inspections
be done. One in particular
may be a wood destroying
insect inspection. Be
sure to check with your
lender to verify if this
is indeed required by
that lending institution.
As a safeguard, I would
recommend that you have
this particular inspection
regardless of whether
or not it is lender required
as climate and environmental
conditions in North Carolina
are such that termites
thrive.
Do
bear in mind the following:
When the structural
and mechanical property
inspection has been done,
be sure to ask the seller
to complete only the repairs
that will affect the safety,
function, and structure
of the house.
You
cannot ask for cosmetic
updates as a part of the
inspection UNLESS you
have bought a house from
a builder and it is new
construction, at which
time we will do a “punch
list” of all and
any cosmetic changes.
If
any damage is caused to
affect the structural
integrity of the house
due to wood destroying
insects, the seller is
responsible for having
the damage repaired.
Property
Survey
You may want
to have the closing attorney
order a property survey
to show exactly where
the property boundary
lines are. Iron pins denote
where the actual property
lines are; a qualified
surveyor will place small
wooden stakes with florescent
ribbons to show you where
those iron pins are. It
is always a good idea
to learn your property
lines. Sometimes there
are encroachments on property
that sellers are not even
aware of. A survey will
mark out any easements,
any flood areas, fences
that encroach on the property,
or if any building restrictions
have been violated.
Homeowners’
Insurance
This is something
that must be initiated
by you. Contact your insurance
agent at least two weeks
prior to the target closing
date. Oftentimes, you
can acquire homeowners’
insurance at a discount
with your current auto
insurance carrier. Insurance
must be ordered in a timely
manner or it may cause
the closing to be delayed.
Appraisal
If you secured financing
to purchase your new home,
your lender will require
that a licensed appraiser
do an independent appraisal
of the house you have
bought. In the body of
the contract it states
that the property has
to appraise for sales
price or higher. In the
event it does not appraise,
you have the option to
do one of the following:
You
may negate the contract
and have your earnest
money returned to you.
We
can re-negotiate the contract
where the seller reduces
the price to match the
appraisal.
You
can pay the difference
between sales price and
the appraisal to the seller
[which, understandably,
hardly ever happens].
Final
Walk Through
As stated in the contract,
you are entitled to a
final walk through of
the house to ensure that
all the requested repairs
have been completed and
that the house is in good
condition. I like to suggest
doing a walk through a
couple of days prior to
closing to ensure that
if any problems arise
they can be rectified
prior to transferring
title. This step is important
because when you finally
sign the paperwork at
closing you are stating
that you accept the property
in its’ present
condition. Once the paperwork
is signed and recorded,
there is no recourse.
The
Closing
This is the time when
you finally take possession
of the house. The seller
will meet us with his/her
agent to go over the closing
statement, sign the lien
waiver and deed release
at the closing attorneys‘
office you have selected.
After the seller has reviewed
the closing statement
and signed the necessary
paperwork, he/she will
be excused. The remainder
of the closing is actually
where you have to sign
all of your loan documents.
A few key points to remember:
Bring
certified funds to the
attorneys' office; a personal
check will not be acceptable.
Doing this will hinder
the closing process.
Be
sure to bring a drivers’
license or passport.
Remember
that you may not get the
keys to the house at this
time; technically, the
house is not yours until
the attorney has gone
to the courthouse and
recorded the deed.
Time
to move!
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