There are many homebuyers today who may just buy a home without considering the ramifications of their decisions.  In other words, there are many buyers who could be rushed into buying a home…more on a whim or an emotional “high,” rather than making home ownership a planned, orderly and informed decision.

 

I, therefore, decided to create this special report.  I expect it will grow as I find other materials and ideas that buyers should consider before purchasing…or have available once they have purchased. 

 

I hope that, as a future homeowner, this booklet will serve to help you become more informed, better educated as a home purchaser and that, after you purchase (each purchase), you will be a satisfied homeowner.

 

There Is More To Purchasing A Home

Than Finding A Piece Of Real Estate To Make An Offer On

           

There is a need among today’s purchasers (and homeowners) for straight talk and sound advice on buying and selling.  Home ownership is a huge decision in most people's lives.  It's not just a shelter or even another investment. 

 

It's the place we bring our dreams to life in flower gardens and family rooms, backyard barbecues and home-cooked Sunday dinners.  It's the place we raise our children, the nest we nudge them out of and welcome them back to again and again.  For many of us, it's become our place of business, thanks to computers and fax machines that have made the home office a reality.

 

So it's easy to see why buying or selling a home is often an emotionally charged, potentially overwhelming process. And helping people through that process remains the single goal of all the services we provide. 

 

That's why considerable time and effort have been devoted to staying in touch with the needs and concerns of all clients and potential customers.

 

Naturally, a great deal has been learned from the hundreds of families who have been helped to move over the years.  They have told us about their dreams and fears, their joys and frustrations, their impressions of the positives and negatives of our business.

 

This book is the result of extensive research to find out what today's home buyers expect from a realtor, and what kind of help they really want and need. It's based upon the questions we hear most frequently - questions that come from people just like you, with concerns and desires much like yours. 

 

And it offers you straight answers, with inside tips and "plain English" explanations to help you feel more comfortable and confident about your home buying and selling decisions.

 

Let’s start by asking a few important questions…

 

 

Where do I begin the process of looking for a home?

 

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 Taste:

 

How large a home do you need?  What style of architecture do you prefer? 

 

On what type of lot?  Depending on where you want to live, you may have a choice of homes in dozens of styles, sizes, and settings.

 

Every family’s needs are different.  It is helpful to examine what you like or don’t like about your current home or apartment.  What don’t you like?  What features are missing? 

 

Do you have extra large furniture (i.e. king-size bed or large dining room suite) that you must accommodate?  How important is the lot?  Do you need a finished family room, garage, special needs room (i.e. office)? 

 

Once you’ve examined all your wants & needs, make a list of the most important features that you absolutely cannot live without.  Those go to the top of your list.  Everything else is a compromise! 

 

Budget:

 

How much home is it wise for you to own or how much do you want to spend on a monthly basis without eating popcorn for dinner every evening?

 

As you consider these things, do a little research of your own.  Look through magazines for ideas about home styles and features.  Drive through neighborhoods that appeal to you to see what's available.  Read the real estate listings in the newspaper to learn about the features that you are 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.

Before You Look At Any Homes…

There Are A Few Things You Should Know

About Purchasing Property!

 

What is the neighborhood (and your neighbors) like? 

 

Are there certain area features that would affect the value of this property in the future?

 

What are the realty taxes on the home?

 

What are the utilities?

 

What home repairs have been made in the past two years?

 

How far do I have to travel for schools, public transit, and shopping?

 

What major repair expenses do I have to look forward to within the next two years?

 

What is the traffic flow in front of or near the property…any main roads, bus routes, or railway tracks?

 

Are there any utility easements or encroachments over the property?

 

Is there a fairly recent survey that shows all the buildings and additions on the property?

 

Has the property had a Home Inspection done when the present owners bought that you could check to see what minor and major problems there were?  Ask the seller for a list of those problems that were fixed!

 

Has the homeowner signed a Property Disclosure statement?

 

How much are the closing costs…and is there a better time in the month to close to minimize them?

 

Who has the best rates and service in the mortgage field…bankers or mortgage brokers?

 

How do you select the best lender to work with?

 

What are the other comparable homes in the area selling for?

           

How flexible are the sellers on their asking price? 

 

At what price do we put in our initial offer?  What is the normal discount off the asking price?

 

How is my financing approval determined?  Is there any beneficial existing financing on the property that I can assume?

             

What can I have included in the sale?  Are there any exclusions?

 

How do you know for sure how much home you can afford?

 

We've found that affordability is probably the single biggest concern of today's first-time homebuyers. 

 

Given the wide range of media coverage regularly devoted to the issue, it's not surprising that many young people wonder how long it will take before they can afford their first home.

 

Our advice...don't sell yourself short.  Talk to a good real estate agent who 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.  We will help find an option that fits your budget, and you may be surprised at just how much home you can afford!

 

How does buying compare to renting?

 

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 no protection against regular rent increases. 

 

If your rent has averaged $1000 a month for the last 10 years, you've spent $120,000 with nothing to show for it.  Isn't it time you invested in yourself instead of in your landlord?

 

What should I consider when I'm deciding which community I want to live in?

 

Good city services, nice parks and playground facilities, convenient shopping and transportation...these are just a few considerations that are important to 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 agent.

 

Agents know the people and the communities they serve and chances are we can help find a neighborhood that fits your family's needs.

 

 

Where can I get information about local schools?

 

Again, a good real estate agent is perhaps your best source.  They know where the local schools are and can provide you with valuable information about school districts, bus services and more. 

 

If you're relocating, an agent may even be able to put you in touch with teachers and principals when you visit the area.

 

How can I find out what homes are selling for in a given neighborhood?

 

Home sales are a matter of public record.  You can get all the information you want about recent sales, including prices and time on the market, by asking your realtor.

 

If you're interested in a particular home, we will be able to provide you with a list of comparable 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 way to evaluate the sellers asking price.

 

How can I find out what my property tax bill will be?

 

The total amount of the previous year's property tax is included on the MLS listing information sheet for the home you're interested in.

 

You'll find that taxes will vary from municipality to municipality and even between homes on the same block, if one is newer than the other.  The reason... newer homes are taxed on their higher assessed value!

 

If I'm moving a considerable distance, is there any way I can screen homes before I go to the new city?

 

Yes.  Today's Multiple Listing Service, which includes up to 98% or more of the homes listed in any given community, has made it relatively easy for buyers to access detailed information on homes for sale practically anywhere in the country.

 

We can refer you to a qualified realtor in your destination community who can get you the information you need before you leave your home here!

 

When I start visiting homes, what should I be looking for the first time through?

 

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, of course, but more importantly, it should fit the way you really live, with space and features that appeal to everyone in the family.

As you look at each home, pay close attention to these important considerations...

 

!            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 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 house?

 

How many bedrooms should I be considering?

 

Whether you are married or not, or have kids or not, spare bedrooms come in handy when family and friends come to stay.  When you're not having guests, extra bedrooms are useful as a library, den, or TV room.

 

Another good reason to choose a home with extra bedrooms...extra space will make your home more appealing to a larger number of interested buyers when it comes time to sell.

What should I ask about each home that I look at?

 

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 questions have been answered, ask until you do understand and are satisfied.

 

In most cases, your real estate agent will be able to provide you with detailed information about each home you see.

 

What should I tell my agent about the homes I looked at?

 

Open communication is critical.  Tell us everything you liked and didn't like about each home that you see.  Don't be shy about talking about a home's shortcomings.  Is the home too small for your needs? 

 

Let your agent know.  Was the home perfect except for the carpeting?  Let your agent know that too.  The more open and descriptive you are, the easier it is for us to "zero in" and find a home you'll love.

 

How many homes should I look at before I buy?

 

There is no set number of homes you should look at before you decide to make an offer on one.  That's why providing your agent 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 each community and narrow your choices to a few homes that are worth a second look.

 

Sometimes seeing many houses can become confusing!  An excellent way to differentiate each home is to name it!  Call it the "cat house" if there were several cats or the "deck house" if the main feature is the deck.  This will make it easier to remember and reach a decision.

 

I'd like to have a professional look at the home before I buy it.  What does a Home Inspector do?

 

For your own safety, and to make sure you're not going to have any surprise repair expenses, using a professional home inspector is highly recommended. 

 

A home inspector will check a home's plumbing, heating, cooling, and electrical systems, plus look for structural problems, check the basement and roof for water leakage, and look at the exterior and interior finishes throughout the property.

 

Usually you call an inspector immediately after you've made an offer on a home. 

 

However, before you sign any written offer, make sure that it includes an inspection clause or other language that says that your offer is conditional upon having a satisfactory home inspection.

 

Your home cannot “pass" or "fail" an inspection and your inspector will not tell you whether he or she thinks the home is worth the money you are offering.  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 a clear-headed decision.

 

Should I be present during the inspection?

 

Absolutely!  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 and tips for maintenance and a lot of general information that will help you when you move into your new home.  Most important, you'll see the home through the eyes of an objective third party.

 

Inspection Checklist:

 

Your professional home inspector will visually examine all parts of a house and property on both the interior and exterior!

Items on your inspection report will include...

 

–          FOUNDATIONS, BASEMENTS, AND STRUCTURES

Basement floor and walls, proper drainage and ventilation, evidence of water seepage.

r         EXTERIOR SIDING, WINDOWS, DOORS

Exterior walls, windows, and doors; porches, decks, and balconies; garage.

r         ROOF

Roof type and material, condition of gutters and downspouts.

r         INTERIOR PLUMBING SYSTEM

Hot and cold water systems; the waste system and sewage disposal; water pressure and flow; and hot water equipment.

r         ELECTRICAL SYSTEM

Type of service, the number of circuits, type of protection, outlet grounding, and the load balance.

r         CENTRAL HEATING & COOLING SYSTEM

Energy sources, heating equipment, age, capacity, and distribution.

r         INTERIOR WALLS, CEILINGS, FLOORS, WINDOWS, AND DOORS

Wall, floors, ceilings, stairways, cabinets, and countertops.

r         ATTIC

Structural, insulation, and ventilation information.

r         FIREPLACE

Notes about the chimney, damper, and masonry and cleaning.

r         GARAGE

Doors, walls, floor, opener.

r         APPLIANCES

Including a wide range of built-in and other home appliances, smoke detectors and television/cable hookups.

r         LOT AND LANDSCAPING

Ground slope away from foundation, condition of walks, steps, driveway.

 

Do I need to talk to an insurance agent?

 

Yes, and the sooner, the better.  Most insurance professionals have a lot of experience in working with home owners and can offer useful tips about home ownership, particularly regarding home safety and keeping your premiums low.

 

Once you've found a home, work together to develop a homeowner's policy that meets your individual insurance needs.  You'll need to bring proof that you have a paid-up policy in place for your mortgage lender when you go to your lawyer's office to sign all the closing documents.

 

Ask us for some recommendations for insurance agents...realtors have dealt with several in their years of experience.

 

When I've found the home I like, how do I make an offer?

 

When you've found a special house you want to call home, you'll probably feel excited and a bit nervous.  We are ready to help you through this important time.  With me, you'll write an "Agreement of Purchase and Sale”...a written document that declares how much you will pay for the home provided that certain conditions are met.

 

This is a legally binding contract that you will sign and date.  Your offer will have a time limit for the seller to accept, reject, or make a counter-offer.  If a counter-offer is made, you have time to respond.  Often, offers go back and forth until accepted or one party decides to end negotiations.

 

Be prepared to encounter a phenomenon called "buyer's remorse".  This occurs after you make a large purchase of anything, let alone a house.  You will ask yourself "Did I make the right decision?"  The answer is, "YES"...consider this self-analysis to be entirely normal!

 

How do I determine the amount of my initial offer?

 

There is really no rule to use in calculating a realistic offer.  Naturally the buyer wants the best price, but negotiations can be influenced by many factors. 

 

After you've looked at the home's features, asked questions, checked comparable sales in the neighborhood, and talked about it with your agent, 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's fair.

 

Most buyers and sellers negotiate on price, with both sides "giving" a little until both agree.  When the price is agreed upon, the paperwork will be initialed by both parties.  Our skills are in negotiating a fair price for you...so use those skills to the fullest!

 

Now you typically begin the process of arranging an inspection and applying for a mortgage.  Often you can be pre-approved for a mortgage prior to signing an offer.

 

What's a "deposit" and how much do I need?

 

When you sign an offer to purchase, the seller will require a deposit...that is, money that shows you are serious about wanting to buy.

 

Usually, you will be asked to write a check for a specified amount, typically from $500 to $1,000 or more...depending upon the value of the property being purchased and the norm in your community.

 

This check will be held by us until you have an accepted offer.  Then, within 1-2 banking days, that check must either be certified or a bank draft be provided for the same amount and be deposited into the broker's Trust Account. 

 

Therefore, your deposit funds must be made readily available before you consider signing an offer.

 

Once the offer is accepted, your deposit money will be held in a special trust account by the agent's company.  Once your offer becomes firm, your deposit will be included as part of your down payment.  If your offer is not accepted, you'll get back all of your deposit, without interest or any deductions depending on the wording in your offer.

 

Keep in mind, though, that if you back out of an offer once it's accepted and all conditions have been removed, you may forfeit the full amount of the deposit and may be liable for other costs incurred by the seller.

 

Is there any way I can protect myself against  emergency repair bills in my new home?

 

Yes.  Home warranties offer you protection against many potentially costly problems not covered by your homeowner's insurance. 

 

They've become increasingly popular in recent years and for a 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.

 

There's so much to remember... what do I have to do?

 

Your agent can help you with many of these things and a good realtor will keep in close contact with you right through the closing period!

 

Here's a partial closing checklist...

 

r         Are all the necessary inspections complete?

r         Are all the required repairs complete?

r         Is your insurance policy paid up and ready to go into effect on the day you close?

r         Has your agent told you the closing dollar amount required?

r         What form of check can you use (and who should it be made out to) to pay for the closing costs?

r         Do you have receipts for the items you have already paid for, including your deposit and inspection fees? Your contract will serve as receipt of your escrow deposit.

 

Is there anything I should do immediately after closing?

 

The first thing you'll want to do is have the locks changed.  Also, make sure that all your utilities have been switched on and are now in your name (electricity, gas, water, telephone and cable television).

 

Remember to put your deed, survey and other important paperwork from the closing in a secure place, preferably a safety deposit box.  Even though it's all on file at the registry office, it's smart to know where your copies are and that you have access to them at all times

 

What are the advantages of using a real estate

agent to help me buy a home?

 

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 an agent is simply that you don’t have to “go it alone.” 

 

A good agent has the training, the know-how, and the experience to help you through each step of the process and to make the process of finding, buying, and moving into your new home as smooth, quick, and enjoyable as it can be.

 

Another advantage is that real estate agents are a valuable source of information about market trends, neighborhoods and especially information about homes for sale throughout the areas in which you're interested. 

 

Remember, not every home seller runs an ad in the local paper or puts up a sign in the yard; you could be driving by some outstanding properties that may be just what you’re looking for in a home. 

 

Another advantage is that, in general, all of these services come to you free of any charge or obligation. 

 

It used to be thought that, legally, all real estate agents involved in a given transaction work for the seller and they were paid by the seller (the vast majority of agents today are still paid by the seller); however, the law has become clearer in this area. 

 

Now, with proper disclosure, the agent, salesperson or broker works for the buyer that they choose to represent.  There is usually no cost to the buyer.  It puts you in a “win-win” situation. 

 

In order to get the process moving you have a Buyer Consultation Interview with us? Why? Simple – because no one likes to waste time but that's what many purchasers do. 

 

They don’t take the time to sit down with their realtor to learn about the home buying process and let the realtor know, in great detail, what their house needs are.  That's what a Buyer Consultation is all about.

 

Through the experience of working with many buyers over several years, we have become skilled in (and enjoy) teaching you about the whole process and listening to your needs.

Even  if you have purchased a property in the recent past, a quick review might be in order to refresh everything in your mind!

 

At a Buyer Consultation meeting, you should be prepared to do the following:

 

1.         Answer several questions designed to give agent information about what experience you've had in home purchasing and your knowledge of the home buying process.

 

2.         Discuss your cost of living and how much you can afford each month.

 

3.         Discuss the various types of mortgages that can be arranged, what they mean, specific terms and conditions within those mortgages, and methods of paying.

 

4.         Determine the amount of down payment required for various lenders and discuss the various sources of down payment.

 

5.         Get a good faith estimate from a lender to help you determine how much money you will need at closing.

 

6.         Do a walk-through of the complete home buying process:

 

a)         What is the size of deposit required with an offer? When is the balance of the actual “cash” needed?

b)         Review some of the special clauses and conditions that should be included in your offer, such as Home Inspection and Financing.           

 

 

7.         How offers are presented and counter-signed.

 

8.         Review the complete range of services that we offer to you:        

 

a)         Many years of successful real estate experience and offer negotiation.

b)         Assistance in qualifying and obtaining mortgage financing.

c)         Construction and renovation experience to assist in answering any technical questions the buyer might have.

 

The goal is to make you a very informed purchaser, who will feel confident when the time comes to sign an offer and purchase your new home!

 

9.         We commit to providing top-quality service and the resources of years of experience to help you, the buyer, obtain the home of your dreams.

You, in return, commit to use our service exclusively.

 

10.       Now we list the specifics of exactly what features you want in your new home, keeping reality in mind, based on what we have learned about what price range you feel most comfortable purchasing a home in.

 

11.       Next, we go through a simple “BUYER QUESTIONNAIRE”

 

By answering the following questions, you are able to give us an overall picture of your situation . . . what your goals are and what your financial situation is.  We’ll help in clarifying any details for you.

 

Where do you presently live?

                                                                                                                                                                                     

Do you RENT or OWN now?

 

What do you like or dislike most about where you are now?

 

Have you ever bought a property before?  When?

 

Why have you decided to BUY at this time?

 

How long have you been SERIOUSLY looking for a home?

 

What features are you looking for in a home?

 

Is there anything keeping you from buying in the next 60 days?

 

What would be the ideal date to MOVE to your new home?

 

Have you ever tried to buy a home before?

 

Are you working with any other REALTORS right now?

 

Are you willing to work with just ONE experienced realtor EXCLUSIVELY?

 

Have you seen any homes already?  Did you like any of them?

 

Where were they?  What did you like most about them?

 

Are you out looking every day 1 week/month?  How often?

 

Is there anything else you can tell me about yourself that would help me find you a home?

 

What sort of down payment are you working with?  Where is it coming from?

 

Have you been on the job for at least two years?

 

What price range have you been considering?

 

What is the most you would feel comfortable with paying on a monthly basis for mortgage payments?

 

If we added in $____________ for taxes and $_____________ for utilities or condo fees to that figure, we would get a total of  $_______________ per month!  Can you pay that much monthly?

 

If we went out tomorrow and found the PERFECT home for you, would you be in a position to proceed with signing an offer on that property?

 

Is there anyone else (family or friend) that you would want to take a look at your favorite home?

 

Have you talked to anyone about how much financing you qualify for?  If YES . . . who and how much?

 

12.             Finally, we run through a list of specialized services that we provide.

 

The following is a list of many of the services regularly provided by us to help our clients feel comfortable with the process of finding and purchasing a home.  Please ask us to perform any of the below listed services that we may be able to provide.

 

Explain the benefits of a Buyer-Broker Agreement.

 

Determine the approximate price range for which the buyer can qualify.

 

Describe the services lenders and loan officers can perform.

 

Explain the benefits and drawbacks of various types of home financing.

 

Explain loan fees and their relationship to the cost and rate of loans.

 

Provide ideas for alternate methods of finance or purchase.

 

Explain the use and benefit of a lender pre-approval letter.

 

Provide a choice of several lenders.

 

Review your financial and personal plans as they relate to real estate.

 

Make sure you are buying a home that meets your needs.

 

Provide you with an “Agency Disclosure Statement”.

 

Explain the Agency Disclosure Statement.