How does “Buyer's Agency” work? Do online property searches really work? How do financing details affect my offer? What factor of a home affects my resale value the most? ________________________________________________________________________________________ The Bottom Line…Nobody Sells more Homes than RE/MAX®. ________________________________________________________________________________________ • How does “Buyer's Agency” work? So you're a pretty business savvy person and think that the home buying process seems like a pretty easy thing. Basically all you have to do is make an offer, inspect the home, secure a loan, and close on the house, right? Wrong! Yes, that is the general layout of the buying process and although it seems straightforward and simple it's far from it. Every Real Estate transaction has its fair share of bumps and obstacles that come up along the way. How you deal with these obstacles will greatly affect whether or not you get the house. Remember, although you may think you can keep a clear head through the process, inevitably your emotions will play a role in the decisions you make. Buying Real Estate is much more complicated. Many different events, companies, and people need to be organized and nurtured in a way that they seamlessly fit together when all is said and done. Remember, the Real Estate transaction does not happen in a vacuum. There are many factors other than just you and the seller. Luckily we have “done this a few times” and can foresee those bumps ahead that may not be apparent to you yet. We have specific insight on how you should structure your offer to best benefit you, we have worked with and created trusting relationships with inspectors, lenders, and title agencies and have your best interest in mind. Buying a home is not just a one-time deal for us. Years after the transaction you can still rely on us to give you advice on how to maintain, improve, and sell your new home. The best part!!!! We work for FREE. That's right, you will never have to pay us a penny! You get the professional advice and expertise of experienced REALTORS® without having to pay for our services! If you want to know how, contact us. ________________________________________________________________________________________ • Do online property searches really work? The Multiple Listings Service (MLS) is a locally provided database of every listed property provided by your local Board of REALTORS®. You must be a REALTOR® to have access to the MLS. But wait...You're not a REALTOR® and this website, as well as many others, offers “access to the MLS.” How can that be? The fact is, we as REALTORS® with The Brandt Group are not in the business of withholding information from you. We want you to be able to search the MLS and tour properties online so you get a feel for what is available on the market. However, online MLS searches only provide a limited amount of data on listed properties. Plus, they are rarely up to date. Good homes sell fast and online MLS searches are usually a few days behind when it comes to newly listed properties. The homes you are looking at may or may not still be on the market and newly listed properties could already be sold before you ever see them. Only the actual MLS can give you up to the minute information on the local market. We will need to take some time to sit down with you and discuss exactly what you are looking for. From there we can input a search directly into the MLS to update you as soon as any new homes come on the market. Having priority access to new and updated properties gives you the competitive edge to beat out other buyers to the hottest new listings. Pictures and a paragraph online are only the tip of the iceberg. Only your REALTOR® can give you access to the MLS! ________________________________________________________________________________________Buying a home is probably the largest investment you'll make in your lifetime. Having an experienced, knowledgeable RE/MAX professional representing you in this transaction just makes good sense. Buying a home is not like buying a car, a mutual fund, or other commodity. It can be a life-changing event. We fully understand the real estate process – and just as important, we understand your local market. Of course we know the right steps to take, but we can also help you avoid a misstep in your home purchase. If a new freeway is going to be built a few blocks away, we'll probably know it. If you're unsure about school districts, we'll be able to direct you to answers. If you're unsure of a builder's reputation, we'll know how you can confirm it. We also perform another important function: minimizing the emotion involved in a home transaction. You may be in love with a home, but we can point out factors that might not make it right for you. ________________________________________________________________________________________ Often times, buyers find a REALTOR® by searching the internet for homes, getting a referral from a friend, or attending an open house. Each is a very reasonable way to find an expert to help you through the process. However, it very important that you “mesh” well with whomever you choose to represent you. Take the time to meet with a prospective REALTOR® in his or her office. Make sure they understand what you are looking for and have the knowledge and resources to help you find the perfect home. Often times REALTORS® will field a phone call from a prospective buyer about a particular house they have listed. The REALTOR® will set up the showing and meet the buyer at the house. Unfortunately, more often than not, that REALTOR® will try and sell the buyer that particular house. Regardless of whether that house fits the buyer's needs. --Side note-- If you are buying a home, does it make sense to go meet a random stranger, alone, at a random house you have never been in? Don't you think you ought to meet the REALTOR® showing you the house prior to going on the appointment? Word to the wise: meet with any REALTOR® in his or her office prior to touring any house with them! Instead, find a Buyer's Agent that you trust to help you through the home buying process. Whether you find a REALTOR® from a Referral, Home Search, or Open House, take the time to sit down and talk with them. Ask them questions, let them ask you questions. If you are represented by a buyer's agent, no other agent can bug you. You can't be pressured into buying something you don't want, no New Home Rep can try and slam you into a house, and you are freed of having to call multiple agents to see more than one house. Your REALTOR® can set up showings on any home on the market, they can show you the homes without the pressure of another REALTOR® being there, and they can help you negotiate terms in your best interest. In short, search the internet, get a referral, or attend an open house to meet a REALTOR®; sit down with that REALTOR® to discuss what you are looking for in a home; then comfortably tour properties, make an offer, and move into your new home. Contact Us to set up an appointment. ________________________________________________________________________________________ • Do I need a home inspection? In short….YES!!!!!! Inspections are one of the most important parts of the Real Estate transaction. Of course, you will have inspected the home when we showed it to you, but you are not used to looking for some things that a professional will find. Even if the issues are not things the seller is expected to repair, at least you will have knowledge of any potential problems. The seller will want this inspection performed quickly, so that you can become aware of any issues that may need to be addressed and move forward with the purchase. The standard inspection period is 10 days after an offer is accepted. Once we receive the inspection report, you will want to allow yourself sufficient time to review and approve the report. If you do not approve the report, you may negotiate with the sellers on which repairs should be performed and who should pay for those repairs. Otherwise, you can cancel the purchase without penalty, as this is a standard contingency in any real estate contract. Before closing, you will have the opportunity to revisit the property to ensure it is in the condition you have required in your offer, and to check that any required repairs have been performed. In most contracts you will have 48 hours prior to closing to walk through the home. It's best to schedule your final walk through as close to closing as possible to prevent any damage to the property between the time you walk through the house and the time you take possession. We can give you a referral for an inspection company to assist you through the process. If you're buying a house…Get it inspected!!!! ________________________________________________________________________________________ • How should I choose a lender? Lenders come in all shapes and sizes. From big national companies, like Chase and Bank of America, to smaller local lenders, the most important thing you need to consider when looking for a lender is ‘what are you trying to accomplish?' In this case you are trying to buy a home, one of the biggest financial decisions you may ever make. For this reason you should choose a lender that knows the local market and who can help guide you through local real estate practices. A REALTOR®'s worst nightmare…<Buyer> "I have a friend who is going to do my loan"…No, this does not always result in catastrophe. However, more often than not, Buyers who bring their own lender to the table end up using our recommended lender in the end, that is, after months of delays and frustration with the original lender. We have done business with a number of lenders, not only on our personal homes but with every buyer with whom we have ever worked. We have established working relationships with those lenders we deem good, honest, and trustworthy of our client's business. Unfortunately, there are some lenders out there that charge unnecessary fees. We hate this and often have to fight with lenders to justify the fees they charge. Therefore, we are the first people you should ask for a lender referral. We know local lenders who know the local market, who don't charge unnecessary fees, and with whom you can actually go meet (not just some voice over the phone in another state). Trust our referral. It's your best option when searching for a lender. Contact Us to Get a Lender Referral ________________________________________________________________________________________ • How do financing details affect my offer? Most buyers do not have enough cash available to buy a home, so they need to obtain a mortgage to finance the purchase. Since you will probably make your purchase contingent upon obtaining a mortgage, the seller has the right to be informed of your financing plans in order to evaluate them. To satisfy their concern, every offer should be accompanied by a pre-approval letter or proof of funds. This will make your offer much stronger! Down Payment As part of your offer, you will need to disclose the size of your down payment. Once again, this allows the seller to evaluate your likelihood of obtaining a home loan. Simply including the type of loan you are planning to apply for will inform the seller of your down payment. It is easier to get approved for a mortgage when you make a larger down payment. The underwriting guidelines are less strict, although there are programs available that can significantly reduce the amount of money you need to put down. Ask us for a referral. Asking for Closing Costs and Financing Incentives As is the case with most offers, you will usually request the seller to pay all or a portion of your closing costs, or provide some other financial incentive. One common request is asking the seller to contribute towards your closing costs, pre-paid items and escrow set ups. Such incentives can be especially effective if a buyer is tight on money or pushing their qualifying ratios to the limit. Whenever you ask for incentives such as these, you will probably find the seller less willing to negotiate on price. After all, what you are really asking the seller to do is to give you some money to help you buy their house. The end result is that, for a little less money out of your pocket in the beginning, you are willing to pay a little more in the long run. The benefit to you is that the thousands of dollars that you saved at closing will only result in a minimal increase to your mortgage over the life of the loan. Cash Offers If you are one of those lucky individuals making a cash offer to buy a home, it makes sense to provide some documentation with your offer that shows you have the funds available (proof of funds). Today bank statements are easily accessible online and can serve as proof of funds to a seller. Other assets such as stocks, bonds, and other savings plans may also be acceptable to a seller, although each transaction is different. ________________________________________________________________________________________ • What factor of a home affects my resale value the most? Most homebuyers expect to buy a bigger and better home someday in the future, so resale value is an important factor in decision-making. Actually it should be the most important factor. Because most sellers use the profits from the sale of their current house as a down payment on their next home, it's very important to put yourself in a position to make money when you move down the road. Although no one can guarantee that your home will grow in value, there are steps you can take that maximize your potential gain. "Location, Location, Location" What does "location, location, location," actually mean and why is it so important? Mostly, location is the most important factor in the resale value of your home. A careful choice of location can minimize potential negative influences on future resale value and maximize positive influences. Schools, zoning, traffic, and the community all greatly affect the resale value of your home. A rule of thumb…If you wouldn't live there, no one else would want to live there. Trust us to recommend a home for its resale value. ________________________________________________________________________________________ Buying a home is the American Dream, right? You should be excited to pursue this dream -- researching neighborhoods, searching the MLS with us, viewing homebuyer's magazines full of appealing homes that are just "minutes from the water" with "fantastic views" and "cozy family rooms." Full of excitement and enthusiasm for the future, you wander about each home envisioning a happy life for you and your family. So you finally find “the one,” make an offer, and wait anxiously for the seller's response. Finally, you and the seller agree on terms and you have bought yourself a brand new home! Congratulations! Break out the champagne and celebrate! But wait… Later that night or perhaps the next day when you have had time to settle your thoughts, you start to contemplate whether you made the right decision. Can you afford it? Is it the right time? Should you have waited? What if you lose your job? What if this happens? What if that happens? Anxiety and stress set in. Sorry…you're not getting any sleep tonight! This is normal!! You're no different than any other buyer out there. This is "Buyer's Remorse." You have just made the single biggest purchase you have ever made in your life and it can be downright scary. Logic deserts you. Worry takes over. Luckily, you are not doing this alone! We do this every day and we have your best interest in mind. Lean on us for advice! Wait a minute… didn't you put together a list of the advantages and disadvantages of buying a home? Back when you were thinking semi-logically, you were fairly rational about home ownership. You catalogued the good and the bad, weighed them against each other, and decided that buying a home was the smart thing to do. Reviewing the list will help resolve your buyer's remorse. Although this will only reduce your stress a little, it will help a lot in the long run. |
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