Buyer's Resources
The Benefits Of My Services For All Buyers
As your representative, I will enter into the multiple listing service system your requirements for a home. RMLS will send me notification any time a property meets your specific criteria. I will make arrangement to show the homes of interest to you. Call me if you should find a home you are interested in viewing, I will be more than happy to assist you. If a home on the market is vacant, it can usually be viewed immediately without an appointment. If the home is owner or tenant occupied, it can usually be viewed the same day, however, a courtesy call is needed to confirm the viewing appointment, some listings may require a 24 hour notice.
As your representative, I can arrange to get you preapproved with a lender. With preapproval, your offer will be stronger because you have the ability to perform. This eliminates the guesswork for the seller. You will also know the maximum dollar amount that you can purchase.
As your representative, I will give you my professional opinion regarding the price, location, and condition of any property that you are considering purchasing. My opinion of price, location, and condition is detached and less emotional.
As your representative, I will review and explain all the forms that you will be signing, sales contract, seller's counter offer, buyer's counter offer, repair addendums, seller's disclosure statements, rights of recession, and so on. You will have an explanation and reason for every form that you sign, as well as, meet all specified deadlines within the contract.
Once we have successfully negotiated a purchase agreement, I will help you select a home inspector, as well as, coordinate the inspection appointment with both the inspector and your schedule of availability. After the home inspection, I will review the report with you to determine if any negotiation is needed with the seller regarding the repairs. If repairs are needed, a repair addendum would be prepared to send to the seller.
When the appraisal is completed, I will review it for accuracy.
If there are any lender-required repairs or conditions resulting from the home inspection or appraisal, I will help you to negotiate these items with the seller. I represent you, the purchaser, and your best interest are always my number one concern.
Prior to signing all closing documents, I will review them with you for accuracy and determine if all the conditions of the purchase agreement have been met. This will protect you from any last minute surprises and ensure a smooth closing at the Title Company.
The last service listed acknowledges the fact that the seller actually pays my fee. The buyer receives all the services and benefits free of charge. I ask for only one thing from the buyer if possible...his or her commitment to work with me exclusively. "The Client Commitment" - I don't have a client until he or she has committed to me. Until then he or she is only a prospect.
Anatomy of a Purchase Transaction
Before the Offer:
Find the property you want to purchase
We have provided the software for you to access all the properties listed on the local Multiple Listing Services (RMLS). You can save your favorite properties and eventually hone the list to a few, and you can save various search parameters to use with a simple click each time you return. We also offer an automated service to receive timely email updates on properties matching your requirements.
Obtain a Preapproval Letter from a Mortgage Broker
Your offer will be stronger if you submit a preapproval letter with the offer. A Prequalification letter has a reputation of ‘not being worth the paper they are written on’. It shows you have answered some questions from your mortgage broker about your financials, and based on your answers you are told you are qualified to buy in a certain price range. Preapproval involves the next step as well. Your mortgage broker has run your credit scores and evaluated your financial issues and you will likely gain full loan approval.
Write the Offer and Submit it with Earnest Money
With your Realtor® work through the terms and conditions of the sale, and plan a strategy for achieving an accepted offer. Sometimes this process involves the offer and several counter offers. Earnest money is part of your down payment and is put in escrow up front, to insure the buyer complies with buyer responsibilities.
When the Offer is Accepted:
After many signatures and lots more initials, we have a willing seller and a willing buyer. Congratulations! Now the work begins.
- The Realtor® representing the seller will usually open Escrow with a copy of the Earnest Money Agreement. The title company will begin producing a Preliminary Title Report
- Copies of the full Earnest Money Agreement should be given to the buyers mortgage broker to start the loan process immediately (a contractual requirement).
- Earnest money offered by a promissory note must be deposited by the due date or you risk losing the property and your earnest money.
- Buyer should hire an inspector and notify an insurance agent for home-owner’s coverage
- Let the buyer’s due-diligence work begin…
5 Major Milestones of a Transaction:
These milestones are also built-in (‘boiler plate’) contingencies which must be satisfied for the sale to be completed. They mostly protect the buyer from losing the earnest money if the buyer terminates the sale for legitimate reasons.
- Review of the Sellers Disclosures
By law, sellers must disclose what they know about the property. We are not a ‘buyer-beware’ state. Buyers have the opportunity to review what the seller has disclosed and negotiate, terminate, or accept the findings. This is usually a 5 day review period once delivered by the listing agent.
- Review the Preliminary Title Report
As soon as escrow is opened, a ‘snapshot’ of the legal title will be sent to all parties. This will show ownership, all liens, judgments, and encumbrances, easements, tax liabilities, and issues such as Covenants, Conditions, and Restrictions (CC&Rs), etc. The buyer has opportunity to review this and raise any issues of concern for negotiation or remedy. There is usually a 5 business day review period once received from the title company.
- Inspection Deadline
It is a necessity that the buyers know what is being purchased, and what is the current condition of the property. A professional inspector is hired by the buyer to thoroughly evaluate the home and a report is given to the buyer for further negotiations, more inspections by specialists, or future maintenance consideration. This is also a time for full due-diligence; talk with neighbors, the city or county, Home Owners Association, etc. Once you close, it is too late (except for fraud).
- The Appraisal
The appraisal is a contingency if the property fails to appraise for the agreed-upon price. The buyer may renegotiate, accept this fact, or terminate.
- Final Loan Approval
The sale is contingent upon the buyer gaining full loan approval. If, through no fault of the buyer’s actions, the financing fails, even up to the closing day(!), the buyer may terminate and retain the earnest money.
Closing= Signing, Funding, and Recording:
After final loan approval, any final funding conditions must be met. More information may be asked of a buyer, or other administrative tasks may have to be done by the mortgage broker or the escrow company. Loan documents are then sent to escrow where they are printed, formatted, and organized for efficient signing.
Signing: Usually 2 or 3 days before closing, both parties to the sale sign at the escrow office. For buyers this may take an hour or more because of all the loan documents. The loan documents are returned to the lender for final review of signatures. This can take up to 48 hours.
Funding and Recording: When all conditions are met, the lender will release funds, wire transfers will happen, and then the escrow company can record the deed in the county courthouse. At this point the sale is legally complete.
Possession: Sometimes possession does not happen at 5:pm on the closing date. If negotiated in the offer, the seller may have a few days to move out before the buyer has possession. Sometimes these days are paid per diem in advance by the seller; sometimes it is a courtesy given by the buyer to the seller. |
