Special offer

HOME BUYERS GUIDE-Step by Step

By
Real Estate Agent with Real Estate Worcester County MA 9052279

 

 

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

- A historical review of all legal documents relating to

Truth-In-Lending Act (TILA)

- Federal law that requires disclosure of a truth-inlending

Title Insurance

- Insurance policy that guarantees the accuracy of the title search

Title

- The right to, and the ownership of, property. A Title or Deed is sometimes

Purchase Offer

- A detailed, written document which makes an offer to purchase

Principal

- The amount of money borrowed from a lender to buy a home, or the

Pre-Approval Letter

- A letter from a mortgage lender indicating

Possession Date

- The date, as specifi ed by the sales agreement, that the buyer

Mortgage Insurance

- Purchased by the buyer to protect the lender in the event of

Market Value

- The amount a willing buyer would pay a willing seller for a home.

Lien

- A claim or charge on property for payment of a debt. With a mortgage, the

Homeowner's Insurance

- A policy that protects you and the lender from fi re or

Home Inspection

- Professional inspection of a home, paid for by the buyer, to

Fixed-Rate Mortgage

- A type of mortgage loan in which the interest

Escrow

- Funds held by a neutral third party (the escrow agent) until certain conditions

Easements

- Legal right of access to use of a property by individuals or groups for

Equity

- The value of the property, less the loan balance and any outstanding liens

Earnest Money

- A deposit given by the buyer to bind a purchase offer and which

Down Payment

- The money paid by the buyer to the lender at the time of the

Debt-to-Income Ratio

- A ratio that measures total debt burden. It is

Conventional Mortgage

- One that is not insured or guaranteed by the federal

Counter-offer

- An offer, made in response to a previous offer, that rejects all or

Contingency

- A clause in the purchase contract that describes certain conditions

Closing Costs

- The costs to complete a real estate transaction in addition to the price

Closing

- The fi nal steps in the transfer of property ownership. On the Closing Date,

Assessed Value

- The value placed on a home by municipal assessors for the

Appraisal

- A professional appraiser's estimate of the market value

Amortization

- The process of reducing the principal debt through a schedule of

Agreement of Sale

- Also known as contract of purchase, purchase agreement, or

Adjustable Rate Mortgage (ARM)

- Also known as a variable-rate loan, an ARM

Abstract Of Title

- A complete historical summary of the public records relating to

Comments (1)

Corey Chase
Silvercreek Realty Group - Meridian, ID

Very good step by step guide to

Mar 27, 2010 02:57 AM