WHAT EVERY BUYER SHOULD KNOW BEFORE PURCHASING A HOME
By Neal & Angela Thomas from debendablerealtynorthwest.com
September 24, 2015
•Property taxes and qualified interest are deductible on an individual’s federal income tax return.
•Often, a home is the largest asset an individual has and is considered one of the most valuable investments available.
•Depending on your loan, a portion of each amortized mortgage payment goes to principal which is an investment.
•We can show you any home currently available on the market no matter what web site you found it on.
•Working through us to purchase a home can be very advantageous because we are looking out for your best interest. We have the knowledge and experience you need so you can make the best informed decision for you. We will earn your trust.
Finding a Home
As a Home Buying Specialist our commitment is to assist you with… AND THE SELLER PAYS OUR COMMISSIONS, YOU DON’T
1)Locating the best home for your needs.
2)Negotiate the lowest price.
3)Secure the best financing.
4)Meet your home buying needs with the least amount of hassle.
5)Provide you with superior client service.
How Do You Find the Really Special Homes?
Some people try to find their special home by previewing dozens and dozens of homes online at various real estate agent websites. The problem is that on any given day, you are only able to view a select few of the current homes available. Plus, in today’s world, things are changing all the time. Therefore it is critical that you have access to current information that is accurate, up-to-the-minute and provided to you in real time. How else can you make an informed decision? That is why we provide you with our FREE “Home Finder” Tools.
Our web-Site is constantly updating so you don’t waste time looking at homes that are already under contract or sold. The home search tool shows you all the homes available, not just what Best Choice Realty is listing. Then, whenever any new properties matching your needs and wants hit the market, you get instant notification! Many times you get information before many real estate agents do.
There are a lot of ways to go about finding a home, but by far, the best way is to set-up a quick get-together with us. It will only take 15-20 minutes. It will only take longer if you have more questions. You tell us what you want and we tell you how we go about finding it for you. In addition you will learn about all of the professional services we provide you with, at zero cost to you. That’s right, we work for you, spend our time and dedicate our resources to making sure you get the best possible value currently available and you pay us nothing for this service.
If you haven’t already set a time to meet with us, all you need to do is call (360) 485-6768 and we will do the rest. Or, you can email direct to: Angela@dependablerealtynorthwest.com
We Use a Simple and GUARANTEED PAINLESS Four-Step Process:
If you’re serious about buying a home, whether it’s your first home, or your families dream home, our process makes it a fun and painless experience. Plus, we will save you time and money.
Step one you have probably already taken. Chances are you are already enrolled in our FREE Homes by Email Services and have been receiving information via email on all the homes currently for sale that match your home buying criteria. If not go to /email-alerts/ and fill out the form. We will continue providing this FREE service for as long as it takes for you to find that special home that you want. So in a real sense we have already begun working just for you.
Step 2 is you finding a home or homes that are of high interest to you and tell us you would like to preview these homes in person.
In step three of the process, we will open the doors to the home or homes you wish to see personally. Additionally, we will make sure that you have the time and freedom necessary to experience each property fully while you are deciding whether or not any of the homes is that special one just for you.
Finally, when we do find the perfect home for you, we’ll answer all your questions and give you all the specific details that you need to make a decision. We will provide you with a current market value assessment of the home you are considering buying. There is never any pressure.
Should you decide that you’d like to purchase a home, we will handle all the details, including negotiating to your benefit. Throughout the entire process we’ll work at your pace, and you’ll be the one making all the decisions.
We will communicate to you with the frequency necessary to keep you informed and worry-free the entire process.
We Provide You Information On Every Home Available Distressed Properties: Short Sales, Foreclosures and REOs
Purchasing a distressed property can be a time-consuming process, but you can also get a great deal on a house you love.
A SHORT SALE occurs when a homeowner sells their home for less than (short of) what they still owe on their mortgage, and their bank (lienholder) has agreed to accept the proceeds from the sale as payment in full of the loan balance.
A FORECLOSURE occurs when a homeowner has defaulted on the mortgage, and lender (lienholder) initiates a foreclosure against the property. The property will eventually be put up for sale at auction. Usually right after the court procedures and on the courts back stairs. The lienholder will send a representative to make a minimum bid and if no investors out bid them the home goes back to the bank and becomes an (REO).
A REAL ESTATE OWNED (REO) occurs when the bank has successfully foreclosed on the property and the foreclosure auction did not result in a sale to an outside bidder. Thus the lender (lienholder) ends up as the new “owner” of the home. Distressed properties often have challenges not typically found with a traditional real estate transaction.
Work with an Agent who is Qualified to Handle This Type of Transaction is the Key to Success
We have been licensed Real Estate Brokers since 2006 and have listed, sold and negotiated the completion of many of these types of transactions.
What you should know about buying distressed properties:
Buying a short sale or REO property is a complex process. The overview below is intended to give you an idea of what you may face if you decide to pursue a purchase of a distressed property. Here is an overview of the most common distressed situations and we can work through them:
Short Sale Properties
Short Sale properties may often be in better condition than properties that are in foreclosure, as the homeowner is working with the bank to release them of their debt and is trying to avoid foreclosure.
Before making an offer on a Short Sale, please keep the following in mind:
Any offer must be approved by the seller’s lender (lienholder).
Because of the required approval process by the lienholder, approval of your offer (and
therefore the short sale) could take months.
A lienholder may not agree to, and thus change, the terms of the agreement made between the seller and the buyer.
Certain repairs may be required before your lender will agree to close. If the lienholder or the seller refuses to make this repairs you could have to spend money on repairs for a home that’s not yet officially in your name.
Foreclosed Properties (REO)
Lenders will typically sell the homes “as-is,” meaning that REO properties will often need to be repaired.
Before making an offer on an REO, please keep the following in mind:
The lender most likely will not agree to make any repairs to the home.
The lender may require you to finance with them.
While most REO properties are already vacant, there is a possibility the lender is still in the process of having the former owners evicted. This could result in a delay in closing, and may also increase the price.
If you are not using the REO bank as your lender it is possible that certain repairs will be required to be made to the property before your lender will agree to close. This could mean you would be required to spend money on repairs on a home that’s not yet officially in your name.
What we will do for you
• Property information
• Area information
• Financing sources
• Real estate skills (negotiation agreements, settlement)
• Follow-up and through with every detail
• Communicate to you a minimum of every 3-5 days via email and/or regular mail.
Communication… The key to a successful home purchase.
Through constant communication, we will keep you apprised of every detail in the entire process of your home buying experience. Once we have found that perfect home, we will negotiate with the sellers and their agent to get the best possible price and terms for the home you desire. You will benefit from our years of experience in the real estate business at no cost to you. As you know, many buyers are unaware of the fact that our commission is paid by the seller.
What we need from you
• Property requirements
• Area selection
• Financial information
• Property selection
We Will Use Our Multiple Listing Association, Technology, The Internet, Private Resources and Contacts… to provide you with up to date information on each new home as it comes on the market.
Utilizing Our Services in Search of Your Perfect Home NEW HOMES
We work with most builders and can get all the information you need to make any decisions, but we will need to accompany you to the property on the initial visit. SHORT SALES – BANK OWNED FORECLOSURES – We will work with you on short sale, bank owned and foreclosure properties.
It is critical that you have professional representation in these types of transactions. I am sure you have read of some of the nightmare experiences buyers have had in this type of transaction. We will be with you every step of the way to avoid a catastrophe!
FOR SALE BY OWNER
A homeowner trying to sell his home himself is usually doing so in hopes of saving the commission, coincidentally, this is the reason a buyer wants to deal direct with a homeowner. If you should see a FSBO, FORECLOSURE, BANK OWNED or any property of interest to you and want the advantages of my services, please let me make the initial contact so you get “inside information”.
There are many factors to consider when selecting a neighborhood that is right for you. Below are just a few of the many factors — You may think of others that are important to you. Please write them on your Home Search Criteria form so they do not get forgotten. Neighborhoods have characteristic personalities designed to best suit single people, growing families, two-career couples, or retirees. Investigate to determine if the neighborhood matches your lifestyle and personality.
Scout out the Neighborhood!
It is important that you scout the neighborhood in person. You live in more than your house. Talk to people who live there. Drive or walk through the entire area at different times of the day, during the week and on weekends. Travel to and from places that you would typically frequent to be sure you are comfortable. Look for access to major thoroughfares, highways, and shopping. Check with local civic, police, fire, and school officials to find information about the area. Look at traffic patterns around the area during different times of the day and drive from the area to work. Is the neighborhood near parks, places of worship, recreation centers, shopping, theaters, restaurants, public transportation, schools, etc.?
Avoiding the Most Common Mistakes Home Buyers Make…
1) Not understanding a local market and all that is available.
2) Thinking that it is both safe and easy to buy foreclosure and short sale homes. This is a biggie!
3) Not understanding pricing and the value of certain amenities.
4) Weak negotiating. This mistake alone can cost the buyer thousands of dollars. 5) Not requiring the proper inspections and/or not understanding these reports when an inspection is done.
6) Not understanding the importance of being pre-approved by a Lender prior to beginning the home buying process.
Utilizing our exclusive service, your home purchase will go smoothly and you will avoid these costly common mistakes.
Financing Its as Easy as 1-2-3
1. A home loan credit report is generated by the credit bureau
2. Your employment, bank accounts, and rental payments (if applicable) are verified
3. All information is forwarded to the underwriter for approval.
Many buyers apply for a loan and obtain loan approval online before they meet with an agent and begin looking at homes for sale. If that is what you have done, great! If you have not completed this process yet it is one of the very things we will help you accomplish before we begin the home buying process.
Loan Pre-Approval 3 Key Benefits
1) You know exactly HOW MUCH YOU CAN AFFORD (Eliminating wasted time looking at homes that are above or below your price range)
2) You get the BEST FINANCING (i.e. lowest interest rate, lowest down payment, which will allow you to get the most house for your money)
3) You can make a STRONGER OFFER (You get the power of immediate action, you can beat out other buyers, and you can negotiate the lowest price & best terms.)
Benefits of Buyer Agency
1). Loyalty The real estate agent must act in the best interest of the buyer.
2). Obedience The agent must follow the lawful instructions of the principal (buyer).
3). Disclosure of all material facts
Examples, but not limited to:
Relationships between agent and other parties
Existence of other offers
Property’s true worth
Status of earnest money
Commission split with other brokers
Seller’s financial condition
Legal effects of contract provisions
4). Confidentiality Any discussions, facts, or information can be shared freely with the kind of CONFIDENTIALITY you expect from someone working in your best interest.
5). Accounting in dealings Reporting of where any money placed in the hands of the broker is kept.
6). Reasonable skill and care
Arriving at a reasonable purchase price and advising buyer of such.
Affirmatively discovering material facts and disclosing them to the buyer.
Investigating the material facts related to the sale
As a buyer’s agent, we represent you and your interests in the purchase of your new home, not the seller’s interests. This is different from a typical sub-agency transaction where the buyer is not technically represented.
UNDERSTANDING AGENCY Who Works for Whom?
SELLER AGENCY (SINGLE AGENCY)
• Agent will represent the best interests of the seller
• Agent will owe the seller fiduciary duties
• Agent must give the buyer all material facts so that the buyer can make an educated decision
BUYER AGENCY (SINGLE AGENCY)
• Agent will represent the best interests of the buyer
• Agent will owe the buyer fiduciary duties
• Agent must give the seller all material facts so that the seller can make an educated decision
Seller Buyer Seller Buyer TRANSACTION BROKER (DUAL AGENCY)
• Agent represents both the buyer and the seller equally
• Agent’s objective is to facilitate a mutually satisfactory agreement among all parties
• Agent gives all options to the buyer and the seller
• Depending on the local market, all parties may be present at contract presentation to negotiate on their own behalf
• All parties have confidentiality.
• Agent may do nothing to the detriment of either the buyer or the seller
• Both the buyer and the seller have a right to counsel.
• Before making any decisions, both parties have the right to seek outside counsel
Seller Buyer NEWLY CONSTRUCTED OR RENOVATED BUILDINGS WHY USE AN AGENT TO PURCHASE A NEW HOME?
The advantages of having an agent help you purchase a new home are the same as those for purchasing a resale home…
• Knowledge of the market
• Help in finding the perfect home quickly
• Expertise in contract writing/negotiation
• Closing assistance The builder has a professional representative watching out for his/her interests, and you need the same expert representation.
Buying a new home or newly renovated property is a little more difficult and time-consuming than buying a resale. We can professionally guide you through this process.
It is very important that your interests be professionally represented when you are entering into a contract for a semi-custom or a custom home.
These transactions are complex and the contract details must be exact in order to protect you and to ensure you get exactly the home you want! We have prepared a list of questions to help ensure that you are dealing with a reputable builder and will review them with you should you be interested in pursuing a new construction or a completely renovated property.
REMEMBER – the Builder often requires that your Agent accompany you on your first visit to the Builder’s sales office in order for your representative to participate in the process.
We will recommend that you have a home inspection performed. Since there is a BIG difference in Home Inspections and Inspectors, we will assist you in the selection process. When major defects are identified we will help determine which, if any, should be corrected by seller.
What is a Major Defect: any defect that would have a negative effect on the long term value of the home or the safety of it’s inhabitants if not replaced or corrected. Often it is best to get quotes for repairs and request dollar amount at closing. If the seller declines, you will have the option to the return of your deposit monies in full or continue with the purchase.
Home Inspections Finding the Major Defects Protects you from unplanned expenses when you don’t know how reliable your appliances will be. Includes furnace, air conditioner and many other protections that can be extremely valuable in the event unforeseen trouble occurs. We make sure your Home Warranty includes all the extras available so that you never end up with an unplanned expense!
THINKING ABOUT BUYING Prior to meeting with Neal or Angela, please fill out this quick survey. Tell us what concerns you most about buying your home using a real estate agent. That way when you meet with us we will discuss only those things that are MOST IMPORTANT to you.
Your meeting with Neal or Angela will take about 20-25 minutes unless you have more questions.
Thank you and see you soon Home Work Page
Here is a Partial List of Our Home Buyer Services…
• We provide you with a list of every home in area of interest
• We open the doors so you can inspect every home first hand.
• We continue until we find the home that is right for you.
• We provide you with detailed information.
• We counsel you so you can make informed decisions.
• We prepare a complete Purchase Offer for your approval.
• We negotiate with Seller and Agent on your behalf.
• We negotiate to your benefit in every situation.
• We open escrow and deposit earnest money for you.
• We find and help secure the best possible financing.
• We order, coordinate all inspections needed or required.
• We explain the findings of all inspections.
• We monitor the progress of your escrow DAILY!
• We communicate almost daily with you during escrow.
• We oversee every detail involved in your new home.
• We make sure every “i” is dotted, every “t” is crossed.
• We make sure escrow closes.
• We hand you the keys to your new home.
• We check in with you in case there are any surprises.
• We continue to communicate with you forever.
• We handle all of your friends and family real estate needs.
• We personally provide your referrals these same services.
• We ask you to grade us on our services.
• We want to be your real estate agents for life! All of this and you pay us nothing! It almost seems unfair doesn’t it?