Home Buying Basics
1. Hire a real estate professional
A Realtor helps you with not only find your dream home, but also helps you to find the mortgage that is right for you and takes you through the entire process, representing you, to make sure you get the home for the best price and terms. Working with a buyer’s agent is worth consideration because he or she is legally responsible for representing the buyer’s interest in a real estate transaction. Before making a decision, however, have a Realtor explain the pros and cons of using a buyer’s agent versus a sales or dual agent.
2. Prequalify for a loan
You will want to get prequalified for a mortgage loan, before shopping homes, to determine how much you can afford. Doing so will allow us to find you find the right home without wasting time looking at other homes you may not have qualified for. It also indicates to the seller that you are serious and can afford to buy the property.
3. Outline what you want.
The next step is to create a realistic idea of the property you'd like to buy. What features are most important to you? Make two lists: one of the items you can't live without and one of the features you would enjoy. Refine the lists as you house hunt. It is also helpful to search online to see what is currently available on the market. Your Realtor can then show you houses that meet your expectations.
4. Visit properties.
Now you’re ready to visit houses. After looking through listings and seeing homes that are for sale that interest you, your Realtor will set up appointments to see the homes and will keep track of the properties we looked at. Each time we venture out to see more properties, we will revisit your notes to immediately eliminate any that clearly do not meet your standards.
5. Make an Offer
We found the home you want. Now lets make an offer on it. A Realtor will know the market statistics of the area and make sure the seller is asking the right asking price. After having looked at the home and all other homes around it that are for sale, your Realtor will have a justified price for the home, making an offer that is favorable for both parties. Making an offer is a process on its own, which involves negotiating and knowledge and could take several days to come to a compromise.
6. Arrange for a home inspection.
After your offer is accepted, your Realtor will set up a home inspection. It's common to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems in a resale home. Your Realtor can help find a reputable inspector, and will negotiate to get you the most for your money once the inspector's report is final. If we negotiate repairs as part of the purchase, we will ask for a "walk through" before finalizing the paperwork. Before your closing date, we will make sure you’ve made all necessary deposits and completed the paperwork – including mortgage, title, homeowners insurance and any other paperwork required by local or state governments.
7. Close.
At the closing table, will potentially, be the mortgage broker, the selling agent and the sellers and you and I.
8. Prepare for life in your new home.
Before rolling out the welcome mat, consider some moving basics: arranging for an alarm company, turning on electricity, water and gas and notifying your local post office of your new address. Change of Address Checklist
9. Move In
10. Most Importantly--Enjoy the Freedom of HomeOwnership!!
How Is My Agent Paid?
Believe it or not, as the home buyer, you're in the enviable position of getting to benefit from the expertise and experience of a professional real estate agent – at virtually no cost to you.
Sound too good to be true? It's true. Real estate agents who serve buyers typically receive a commission from the sale of the home-which they share with the listing (or selling) agent. And
sometimes agents are paid a pre-negotiated flat fee for services, irrespective of the sale price of the home.
Not too many years ago, real estate agencies were "seller-only," meaning that the real estate agent represented the seller, not the buyer. Under the seller-only arrangement, real estate agents (and brokers) only represented the interests of the seller, not the buyer. In fact the buyer was largely unrepresented in the transaction and usually not even aware of it!
All that changed in the 1990s when conventional wisdom caught up with this reality–without a buyer, a home won't sell.
While the real estate commission is still derived from the proceeds of the sale of the home, the advent of the buyer-agency, changed the relationship between agent and buyer.
As a buyer, you can now choose to be fully represented by a real estate agency in the purchase of your property. One of the advantages of buyer representation is that you'll have a trained
professional looking out for your interests in the home buying process-interests that vary greatly from the seller's.
Letting Your Agent Lead
Just when you thought you had the whole home-buying process under control, you fall in love with what everyone's calling a "FSBO", - a house that is For Sale By Owner. Does that change anything? Do the same rules and guidelines apply? And most importantly, can you still purchase the home with the representation of your buyer's agent?
Absolutely. Sellers will agree to work with an agent who brings a qualified buyer to the table. And when you're embarking on an experience as large and important as purchasing a home, it's
important that you have a qualified professional representing your best interests - whether the seller does or not.
Just as you would for any other listed property, let your agent be the point of contact with the seller of a FSBO. This is important because not only is your buyer's agent well-qualified and dedicated to serving your needs, in some cases your agent may have to have the first conversation with the seller in order to be able to represent you in the purchase.
REMEMBER, THE SELLER AND THE SELLER'S AGENT REPRESENT THE SELLER, NOT YOU!!! HAVE A REALTOR REPRESENT YOU!!!