H O M E Buyers
Guide
The home buying process - a brief, step-by-step overview 2 A home buyer's glossary 8 To buy or not to buy - considerations for fi rst-time home buyers in this market 13 The loan process - fi nancing your home purchase 17 Successfully negotiating the deal 22 Expect great service from your REALTOR® 26 Home search worksheet 28
Contents
R E A LT O R . C O M ®/ T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S
© 2009 REALTOR.com® All rights reserved. rdc_home buyers guide_102909
The home buying process - a brief, step-by-step overview
If you're like most people, buying a home represents your single biggest investment
- and debt. As such, the home buying process can be one of the most exciting,
but sometimes also stressful, experiences you ever go through. And this is true
whether you've bought many homes or you're looking to buy your fi rst, whether
you're in the market for a new primary residence, an investment property or that
perfect vacation getaway.
Moreover, never has the real estate market offered more great opportunities, or
been fraught with more risks, than now. There are so many factors to consider and
so many decisions to make. That's why, when buying, it's crucial for you to have
all the available resources necessary to make a well-informed decision, together
with the time required to make complete use of them. That's also why you should
enlist the help of a trusted REALTOR® who'll be able to provide you with
expert consultation at each step of the buying process.
Generally, fi nding and purchasing a home includes the following steps,
some of which are examined in more detail throughout this booklet:
1. Defi ne Your Goals, Research Your Options, Make Your Plans
Given that buying a home is such a big step, it's all the more important
for you to educate and prepare yourself as much as possible in
advance. This means clearly determining why you're buying and
what kind of home you're looking for. And because buying and
fi nancing a home are so closely related, it also means examining
your current fi nancial situation and projecting how much
you can afford.
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Once you've answered these questions even tentatively you'll be in a better position
to research your housing and mortgaging options, as well as create an action
plan and timelines for moving forward. You may want to do this yourself, but you
may also benefi t by consulting an experienced REALTOR® right from the start.
2. Contact A REALTOR®
Buying real estate is a complex matter at the best of times, given that there are so
many factors to consider and no two homes or transactions are alike. However,
with all the unique opportunities and potential pitfalls of the current market, it's
even more important for you to contact a REALTOR® once you've defi nitely
decided to buy.
In choosing a REALTOR® to guide you through the property search, fi nancing,
negotiation and transaction processes, you should consider their local market
knowledge, experience and track record.
3. Get Pre-Approved For A Loan
Generally, it is recommended that you get pre-qualifi ed for a loan
before you start viewing homes with the serious intention of buying.
The pre-approval process involves meeting with a lender and authorizing
them to examine your current fi nancial situation and credit
history. On the basis of this examination the lender will provide
you with a document that details how much you can borrow
to buy a home.
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The benefi ts of pre-qualifi cation include: • You'll have information about what you can afford and be able to plan accordingly • As a qualifi ed, motivated buyer you'll be taken more seriously when you make an offer on a home • Lenders can tell you whether you qualify for any special programs that will enable you to afford a better home (particularly if you're a fi rst-time buyer)
Real estate fi nancing is available from many sources, and an experienced
REALTOR® will be able to suggest lenders with a history of offering excellent
mortgage products and services. For more information about the benefi ts of
pre-approval and the loan process in general, see The loan process - fi nancing
your home purchase, on page 17.
4. View Homes And Select THE ONE
Simply put, key to the home search process is knowing what you're looking for.
Among other things, that means distinguishing between "must-haves" and "liketo-
haves". To help you to target your search and defi ne your home preference
priorities, this guide includes a Home search worksheet on page 28.
That said, here are a few recent facts about the search process that
might put your experience in perspective:
• 87% of buyers use the Internet to search for homes • The typical buyer searches for 10 weeks and views 10 homes • 81% of buyers view real estate agents as very helpful in the search process
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There are many benefi ts to starting the search process at a real estate website like
REALTOR.com®, the world's most extensive source for property information.
You can view many homes and their details, take video tours and access neighborhood
info.
However, it's also important to view homes in person. While their property details
may seem similar online, homes can actually be very different in terms of layout,
design, workmanship and other aspects. In addition, you should ideally view homes
with the help of an experienced and eagle-eyed REALTOR® who'll notice things
you might miss, provide expert analysis, and act as an impartial sounding board.
5. Make An Offer And Negotiate With The Seller
Now that you've found the home you'd like to buy, it's time to make an offer.
Your local real estate association, working with legal counsel, has developed the
contracts that are used for transactions in your area. These contracts enable you to
specify a sale price and also include many clauses for specifying various terms of
purchase, such as the closing and possession dates, your deposit amount, and other
conditions. You should carefully review these clauses with your REALTOR®
to ensure that they express your desired offer. In addition to drawing up the
contact, your REALTOR® will be happy to address all your questions
about the offer process.*
Once you've written the offer your REALTOR® will present it to the
seller and the seller's representative. At that point, the process - given
that a home's eventual sale price is subject to supply and demand -
will depend on the kind of market you're in. Generally though, the
seller can accept your offer, reject it, or counter it to initiate
the negotiation process.
* Customs for drawing up contracts vary by region.
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Successive counter-offers, with deadlines for responding and meeting conditions,
will be exchanged between you and the seller until a mutually-satisfactory pending
agreement is reached or the negotiations collapse.
Negotiations can involve many factors relating to different market conditions,
homes and sellers, some of which are examined in Negotiating The Deal, on
page 22.
6. Secure Your Financing
Once you have a pending agreement with the seller, it's time to go back to your
chosen lender to fi nalize your mortgage details so you can close the deal. This
means fi nalizing your down payment, interest rate, regular payment schedule and
any other fi nancial conditions associated with the closing.
As noted in the section on loan pre-approval, if you've already been qualifi ed
with a lender for a certain loan and home purchase, this phase of buying your new
home should be a relatively straightforward matter that centers around fi nalizing
the loan details and signing the mortgage papers. That said, it can defi nitely
provide peace of mind if you have an experienced REALTOR® by your side
at the time to explain every aspect of your mortgage.
Indeed, your future may depend on it. As the old saying goes, ‘let
the buyer beware'. Particularly in these times, when so many buyers
are suffering the consequences of having not fully understood their
fi nancing decisions, it's crucial for you to work with people you trust.
In this regard, a good REALTOR® can be a true friend for life.
For more information on the loan process, see The loan process -
fi nancing your home purchase, on page 17.
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7. Close The Deal
If you've effi ciently taken care of everything connected with purchasing your next
home, the experience of taking ownership will be a positive joy with no surprises.
Key steps to the closing, also referred to as the "escrow" or "settlement", include:
• Getting a Title Search - an historical review of all legal documents relating to ownership of the property - to ensure that there are no claims against the title of the property. It is also necessary to purchase Title Insurance in case the records contain errors or there are mistakes in the review process. • The Final Walk-through - you'll be given the chance to look at the home to make sure it's in the same condition as when you signed the sale agreement. • The Settlement - typically, on the Closing Date you'll go to a lawyer's offi ce to verify and sign all the paperwork required to complete the transaction. The settlement will include your paying your closing costs, legal fees, property adjustments and transfer taxes. At that point, you'll receive the property title and copies of all documentation pertaining to the purchase.
Oh, and one more thing - you'll get the keys. In most cases, Possession
Date will fall within a couple days, at which point you'll be able to
move into your new digs.
A home buyer's glossary
When buying a home, it's important to understand some of the key concepts and
terms. Throughout the purchase process, your REALTOR® will be available to
explain any unfamiliar terms you encounter. That said, here is a short list of terms
you'll want to know:
the legal ownership of a particular property from the time of the fi rst transfer to the present. is one in which the interest rate changes over time, relative to an index like the Treasure index. sales agreement according to location or jurisdiction. A contract in which a seller and buyer agree to transact under certain terms spelled out in writing and signed by both parties. fi xed payments at regular intervals of time, with an interest rate specifi ed in a loan document. of a property based on local market data and the recent sale prices of similar properties. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 8 R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 9 purposes of determining property taxes. as specifi ed by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the fi nal disbursements are paid. Also referred to as the Settlement. of the home, to include: points, taxes, title insurance, appraisal fees and legal fees. that must be met and agreed upon by both buyer and seller before the contract is binding. part of it while enabling negotiations to continue towards a mutually-acceptable sales contract. government. calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 10 closing. The amount is the difference between the sales price and the mortgage loan. Requirements vary by loan type. Smaller down payments, less than 20%, usually requires mortgage insurance. is held in escrow. If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not fulfi ll all contract obligations, the deposit may be forfeited. or other debts against the property. specifi c purposes. Easements may affect property values and are sometimes part of the deed. of a contract are met and the funds can be paid out. Escrow accounts are also used by loan servicers to pay property taxes and homeowner's insurance. rate does not change during the entire term of the loan. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 11 evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc. fl ood, a liability such as visitor injury, or damage to your personal property. lender has the right to take the title to your property if you don't make the mortgage payments. An appraised value is an estimate of the current fair market value. default (typically for loans with less than 20% down. Available through a government agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI). can move into the property. Generally, the it occurs within a couple days of the Closing Date. that a buyer qualifi es for a mortgage of a specifi c amount. It also shows a home seller that you're a serious buyer. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 12 amount of the loan that has not yet been repaid. Does not include the interest paid to borrow. a property, and which may be amended several times in the process of negotiations. When signed by all parties involved in the sale, the purchase offer becomes a legally-binding sales agreement.* used as proof of ownership of land. Clear title refers to a title that has no legal defects. and protects lenders and homeowners against legal problems with the title. statement for consumer loans. The statement includes a summary of the total cost of credit. ownership of a property to determine if there have been any fl aws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property. * The purchase offer and contract procedures vary by region.
To buy or not to buy - considerations for fi rst-time home buyers in this market Buying your fi rst home is a major step. There's a lot you need to know to make the right decisions - and also to avoid making the wrong ones. And that's particularly true in this current buyers' market, when there are so many homes available and sellers have such diverse motivations. The good news is that if you know what you're doing, or if you're working with a highly-experienced REALTOR® who does, this market offers fantastic opportunities to get a great home at a great price. Also, be aware that "fi rst-time buyer" doesn't necessarily mean someone who has never owned real estate before. Under the terms of the current Federal tax credit (see below) and other State programs, "fi rst-time buyer" refers to those who have not owned property within the past three years. For details, speak with your local REALTOR®.
Owning Versus Renting Without question, owning a home comes with responsibilities and risks that you don't have to worry about when you rent, such as a mortgage, taxes, homeowner's insurance, maintenance and repairs, to name a few. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 13 R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 14 However, fi nancial advisors - not to mention homeowners themselves - say there are far more advantages to owning:
• Historically, it has trended that over time, you'll lose money by renting instead of owning your own home. Why not build up equity in a home instead of paying your landlord's mortgage? • Although there are periodic market drops, historically owning a home has been a prime fi nancial investment • You can take advantage of many ongoing tax benefi ts, like deducting the interest on your mortgage and property taxes from your income tax • Owning a home isn't just a good investment in fi nancial terms, it's also an investment in a higher quality of life - particularly if you have a family or if you're planning one • There is a special kind of pride in the ownership and upkeep of a home that you won't get with renting At the end of the day, it just feels good to own your own home. You can decorate it any way you like, renovate or build additions, personalize your landscaping
Do You Qualify To Own? There's only one way to fi nd out: go to your bank and/or another lending institution and allow them to perform a credit check and analyze your fi nancial situation generally. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 15 You might be surprised, because the pity is that there are many renters who fi nancially qualify to own their own homes, but don't realize it. Are you in this category? It would be a shame if you wanted to own your own home, but didn't know you could - particularly in this perhaps once-in-a-lifetime buyers' market. Also, keep in mind that you may be eligible for loans insured by the Veterans Administration (VA) or the Federal Housing Administration (FHA).
Is It A Good Time To Buy? Generally speaking, if you're fi nancially qualifi ed, your timing couldn't be better. In fact, few markets have ever offered the kinds of opportunities that currently exist for fi rst-time home buyers, because:
• Home prices are down generally • Mortgage rates are historically low. You might be able to lock-in at a very low rate on a 30-year mortgage! • There is a large listing inventory generally - i.e. plenty of homes to choose from • There are many foreclosed homes and distress sale listings available at greatly reduced prices • There are many builder liquidations - i.e. new homes - available at greatly reduced prices (The information above is based on market conditions at time of this printing.) R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 16
Also, as part of an economic stimulus package approved by the U.S. Congress and signed by President Obama in February 2009, fi rst-time home buyers are eligible for an $8,000 tax credit if they purchase a home by November 30th, 2009. As of this writing, senior members of Congress are working to extend - and perhaps increase - this tax credit into 2010. Additionally, many States and local jurisdictions have programs to supplement the Federal tax grant. So the bottom line is that if you are currently renting but really want to own a home, this is a fantastic time to buy. And again, you may qualify to buy and not know it. So talk to a knowledgeable, experienced REALTOR® about your options. Your REALTOR® will not only be able to guide you towards getting all the fi nancial support you qualify for, but you'll also get the scoop on the many and various great real estate opportunities currently available. Not only that, but in case you didn't know, all the work that a REALTOR® does to help you fi nd, fi nance, and purchase a home won't cost you a penny - it's all paid for by the seller!
The loan process - fi nancing your home purchase Unless you're one of the rare few able to pay cash for your home, central to buying is fi nding the right lender and mortgage product. There are many different kinds of lending institution, offering a wide range of loans and special programs. In fact, you should diligently research your options and shop around for a mortgage with as much care as you take when looking for a home. Here are the main steps to securing the mortgage that best suits your needs.
Educate Yourself About Your Options Sad to say, but we're currently in a time when a great many people are suffering the consequences of having made poor - and perhaps ill-advised - mortgage decisions. That's why it's crucial for you to learn as much as you can about your mortgage options. There are myriad loan types and programs available through thousands of banks, fi nance companies, credit unions, and other assorted lenders. Not surprisingly, there are just as many sources of information about mortgages. Web sites like REALTOR.com®, books, news articles, seminars, mortgage brokers, lenders, and knowledgeable REALTORS® can all help you make your way through the labyrinth of fi nancing possibilities, so make use of them. And be sure to get a few opinions. In short, do your homework before you put your name on the line, because what you don't know could hurt you. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 17 R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 18
Sincerely Examine Your Financial Situation Together with educating yourself about your loan options, you should be asking yourself how much mortgage and down payment you can really afford. Make yourself accountable. What might you be giving up - not just every month, and also perhaps 20 years down the road - by extending yourself further? Maybe taking on a larger mortgage will pay off greatly as an investment, maybe it won't. Be sure to weigh the risks and opportunity costs. Along these lines, REALTOR.com® provides you with a variety of loan calculators that will help you determine what your regular payments will be based on your projected down payment, the loan principal, the interest rate, the mortgage term, and so on. One other point to note is that some lenders will qualify you for the maximum they're willing to lend which, however, may be more than you can truly afford given all your other responsibilities. Additionally, be sure to factor all related taxes, insurance, improvements, homeowner fees and all other potential costs into the equation. The bottom line is that you should make a list of your monthly expenses, as well as project your fi nancial commitments during the life of the mortgage. This will provide a realistic fi gure of what you can afford. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 19 In shopping for a loan you should consider two main sources: direct lenders and mortgage brokers. Direct lenders have the money and make the decisions, but have a limited number of in-house products to offer. Brokers are intermediaries who charge a fee, but who can provide you with loan options from many sources and can often save you money overall. In this case, you might consult your REALTOR® as they may have some benefi cial connections.
Your Basic Mortgage Options Generally, there are two ways you can go: a fi xed-rate mortgage with an interest rate that remains the same for the life of the loan, or an adjustable-rate mortgage (ARM) with a rate that adjusts up or down, depending upon economic trends. The advantages of a fi xed-rate mortgage - particularly if you lock in at a low rate - are that they protect you against the risk of rising interest rates, and their stability can also make it easier for you to plan and budget your short and long-term expenses. Their down side is that they generally have higher rates than ARMs at any given time, and by locking in you run the risk of being trapped at a relatively high rate if interest rates fall. In this connection, another main consideration when getting a fi xed-rate mortgage is the term. Shorter term mortgages like a 15-year have lower rates than a 30-year. The shorter term and lower rate mean that you'll pay both less principal and interest over the life of the loan, although your monthly payments will generally be higher. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 20 On the other hand, an adjustable-rate mortgage's (ARM) rate is commonly based on the U.S. Treasury index for a one-year Treasury bill, although it may also be geared to other indexes. Generally, lenders add 2-4% to the index rate to get their ARM rate. Initially, the rate is lower than the fi xed rate by a quarter point to two points or more. This rate will periodically adjust within set limits or "caps" that are specifi ed by the terms of the loan. Finally, it must be reiterated that the loan you ultimately qualify for will depend on your credit status. The best rates and terms are only available to those with solid credit so, if possible, pay off your credit cards and make all other bill payments in full and on time.
Apply For A Mortgage Once you've reached a pending agreement with a seller to buy a home you'll have all the details you need to formally apply for a mortgage. When you meet with your chosen lender to complete the application you'll need to provide information - if you didn't during the pre-approval process - about your household income, job tenure and stability, assets and existing debt, and regular expenses. This may take the form of pay stubs, bank and investment statements, tax returns and other documentation. The lender will also check your credit status. t, nvestment lso R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 21 During the application process you'll discuss your different loan options and programs you qualify for, as well as fi nalize the size of your down payment. If you place less than 20% down, the lender will require the mortgage to be guaranteed by a third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI). Generally, because there are so many considerations and so much at stake, make sure you bring all your questions to the table, and this includes asking the lender to explain all terms of the mortgage. You may fi nd that having a trusted and knowledgeable REALTOR® by your side to explain every aspect of the mortgage contract will increase your peace of mind. Lastly, if you're deemed worthy of the loan you're seeking, the lender will often have the home you're buying professionally appraised to ensure that it is worth the purchase price.
Successfully negotiating the deal Negotiating the transaction is usually the most complex aspect of buying a home. At the same time, it's the one that can involve the most creativity. That's why it's important to have an experienced and savvy REALTOR® who has successfully worked through many different transaction scenarios. That said, what follows are a few strategies for negotiating a good deal in a buyer's market like this one, all of which involve: presenting yourself as a serious buyer while, at the same time, keeping your emotions in check; trying to understand and respect the priorities of the seller; being creative and, where necessary, willing to compromise to get the deal done.
Strike A Balance - Motivated But Not Too Eager For you, as a buyer in a buyers' market, it all starts before you even make an offer, the fi rst time you see that home you think might be THE ONE. It's important that you not give yourself away to the listing agent by getting too excited about your "fi nd". If anything, ask a few questions, maybe take a few notes, and let your REALTOR® do most of the talking. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 22 R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 23 The point is that ideally you're trying to strike a balance by appearing, on the one hand, to be a qualifi ed, motivated buyer while, on the other hand, not appearing to be too eager. You'll demonstrate that you're a serious buyer - the kind sellers look for - at the time you make the offer, particularly if you:
• Have already sold your present home (if you have one); or in any case, make it clear that you're not dependent upon selling in order to buy • Make an all-cash offer or show that you've been pre-approved for a loan • Provide an attractive "earnest" deposit with the offer • Make a reasonable offer that still gives you room to negotiate your price Not only will this approach show that you're qualifi ed and motivated, it will place you in a stronger negotiating position overall. The sellers won't want to lose you and so will be more inclined to reduce their price a little and/or make some concessions with respect to terms.
Understand And Respect The Seller's Priorities If, through the negotiations, you can fi nd out through more about the seller's situation and priorities you'll not only improve your position, but you'll also be able to resolve any obstacles more creatively and sensitively. For instance, if a seller is adamant about the sale price they might be more fl exible about taking care of a few repairs or part of the transaction costs. Or if they need a certain closing date, you might be able to get them to concede some other terms. There are no "one size fi ts all" approaches to negotiating, particularly in the current market when there are so many distress sales. In principle, though, the more you know about the seller's priorities, the more you'll be able to work with them in order to achieve your own priorities. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 24
Look Beyond The Price While a home's sale price is generally the focus of negotiations, often sellers will have needs such that the terms of purchase can signifi cantly infl uence the fi nal deal. Additionally, it is in relation to the terms - which can represent thousands of dollars in value - where you can get most creative when it comes to resolving the obstacles to transacting. Here are some elements in the purchase agreement that you might put on the table for discussion:
• An all-cash offer by you • The amount of earnest money deposit you provide • Closing and Possession Dates • Inclusion of furniture, fi xtures, etc., not considered part of the property • Payment for repairs required by your lender • Payment of taxes, utilities and rents • Payment of title search and insurance • Payment of survey, transfer taxes and recording fees • Payment of general and termite inspections • Payment of attorney's fees Along these lines, the key is to get all terms of purchase in writing within the agreement. These terms should then be carefully reviewed and clearly understood by both you and the seller so that you're on the same page and the negotiations move forward. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 25
Is It Really THE ONE? If So, Make It So Even in a buyers' market like this one, if you're really interested in buying the home you're negotiating over - if it really is THE ONE - you should be willing to make some compromises to make the deal happen. If that's not the case, then you should listen to your heart and consider looking for another home - it just might be out there waiting for you . . . That said, here are a few basic principles of successful negotiation to consider if you're committed to completing your purchase:
• Remember your priorities and respect the seller's - don't let small things get in the way of your better judgment • If necessary, defer until ‘later' - if small issues do get in the way in the midst of big ones, focus on and consolidate your agreement on the big issues and come back to the small ones later • At the end of the day, if there are disagreements about relative small expenses, split the difference and smile The reality is that most negotiations proceed without much problem. In the event that there are diffi culties but you're committed to buying the home, remember: where there's a will there's a way.
Expect great service from your REALTOR® Many REALTORS® are buyer specialists who focus on helping people successfully fi nd and buy the homes they've always wanted. One benefi t of using their services is that they hear about listings right when they come on the market - in fact, sometimes even before they're on the market. And that's just the fi rst step. When they work for you they will:
• Educate you about Buyer Agency, outlining their professional responsibilities to you, including complete Disclosure, Loyalty, Confi dentiality, Obedience and Accountability • Help you explore your fi nancing options and, if required, refer you to some excellent mortgage professionals so you can make the best possible mortgage decision • Save you time by regularly searching the market for affordable homes that meets your criteria • Email your specifi c home requirements to top producing agents in the area so they know they have a qualifi ed purchaser • View homes with you and provide comparative analysis. They can also refer you to expert home inspectors that will provide more in-depth analysis and advice (cont.) R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 26 R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 27
• Provide consultation in relation to your written offer to purchase a home, with all terms approved by you • Negotiate the best possible price and terms for you and take care of all the documentation details • Keep you fully informed about all activities that lead to the transaction closing • Assist you, if necessary, in fi nding any home-related services you need. In short, they'll provide you with comprehensive, high-quality buyer's service. So when you decide to buy a home, or if you hear that any of your family and friends are looking to buy, be sure to take advantage of the knowledge, experience and professionalism of a REALTOR®.
Home search worksheet Main Requirements Price range: ______________________ Lot size: _________________________ Area: ___________________________ Square footage: ___________________ Detached/Attached: ________________ Number of bedrooms: ______________ House style(s): ____________________ Number of bathrooms: ______________ Age of property: ___________________ Garage: __________________________
Specifi c features (e.g., waterfront, view, large lot, pool, fi replace, basement, garage size, built-in vacuum, distance to school, additional room preferences, etc.): ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________
Additional comments ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ 1 National Association Of REALTORS® Profi le of Home Buyers and Sellers, 2008. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 28
Home search worksheet Main Requirements Price range: ______________________ Lot size: _________________________ Area: ___________________________ Square footage: ___________________ Detached/Attached: ________________ Number of bedrooms: ______________ House style(s): ____________________ Number of bathrooms: ______________ Age of property: ___________________ Garage: __________________________
Specifi c features (e.g., waterfront, view, large lot, pool, fi replace, basement, garage size, built-in vacuum, distance to school, additional room preferences, etc.): ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________
Additional comments ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ 1 National Association Of REALTORS® Profi le of Home Buyers and Sellers, 2008. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 29
Home search worksheet Main Requirements Price range: ______________________ Lot size: _________________________ Area: ___________________________ Square footage: ___________________ Detached/Attached: ________________ Number of bedrooms: ______________ House style(s): ____________________ Number of bathrooms: ______________ Age of property: ___________________ Garage: __________________________
Specifi c features (e.g., waterfront, view, large lot, pool, fi replace, basement, garage size, built-in vacuum, distance to school, additional room preferences, etc.): ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________
Additional comments ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ 1 National Association Of REALTORS® Profi le of Home Buyers and Sellers, 2008. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 30
Home search worksheet Main Requirements Price range: ______________________ Lot size: _________________________ Area: ___________________________ Square footage: ___________________ Detached/Attached: ________________ Number of bedrooms: ______________ House style(s): ____________________ Number of bathrooms: ______________ Age of property: ___________________ Garage: __________________________
Specifi c features (e.g., waterfront, view, large lot, pool, fi replace, basement, garage size, built-in vacuum, distance to school, additional room preferences, etc.): ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________
Additional comments ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ 1 National Association Of REALTORS® Profi le of Home Buyers and Sellers, 2008. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 31
Home search worksheet Main Requirements Price range: ______________________ Lot size: _________________________ Area: ___________________________ Square footage: ___________________ Detached/Attached: ________________ Number of bedrooms: ______________ House style(s): ____________________ Number of bathrooms: ______________ Age of property: ___________________ Garage: __________________________
Specifi c features (e.g., waterfront, view, large lot, pool, fi replace, basement, garage size, built-in vacuum, distance to school, additional room preferences, etc.): ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________
Additional comments ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ 1 National Association Of REALTORS® Profi le of Home Buyers and Sellers, 2008. R E A L T O R . C O M ® / T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S 32
Title Search
Truth-In-Lending Act (TILA)
Title Insurance
Title
Purchase Offer
Principal
Pre-Approval Letter
Possession Date
Mortgage Insurance
Market Value
Lien
Homeowner's Insurance
Home Inspection
Fixed-Rate Mortgage
Escrow
Easements
Equity
Earnest Money
Down Payment
Debt-to-Income Ratio
Conventional Mortgage
Counter-offer
Contingency
Closing Costs
Closing
Assessed Value
Appraisal
Amortization
Agreement of Sale
Adjustable Rate Mortgage (ARM)
Abstract Of Title
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