Below is a list of events that will occur before you start looking for a home, while you are looking for a home and after you have found a home and have it under contract:
1. You need to find out how much of a home you are pre-approved to purchase.
2. Before you find a home and put it under contract, you need to choose a lender that you will be getting financing through and who is going to give you the best terms and conditions.
3. This is a list of the documents lenders typically ask for, the sooner you get these to them the easier the process goes. I suggest giving a copy of these documents to them right at the start.
a. Last 2 years work history
b. Last 2 years W-2’s
c. Last 2 years verification rental history or mortgage payments
d. Year to date pay stub
e. If on disability, social security or pension and you are claiming that income you have to show proof of that income
f. Bank statements from the last 12 months
g. If you are divorced or separated, you must provide either the divorce decree or separation agreement.
h. If claiming Child support income, you need to show proof of receipt
i. If you have filed bankruptcy, you will need to provide a certified legal copy of discharge
j. Any judgments or tax liens must be paid off
k. If you are paying child support, you must show proof that you have been paying in a satisfactory re-payment plan
l. If you have any 401k, IRA, Stocks & Bonds or savings accounts, you will need to provide statements from those accounts.
4. You need to get a copy of a pre-approval letter without a dollar amount on it to accompany any offers you make on a home so the sellers are aware that you are already pre-approved.
5. Now it’s time to start looking for a home. Your agent will set up an automated search for you and email you all the active listings in the MLS that fit the criteria of the home you are looking for based on the amount you have been pre-approved for. This saves you time from having to drive around looking for homes that are for sale.
6. Once you find the home you are looking for and make an offer on it, and the offer is accepted, you are now under contract to purchase that home.
NOTE: Additional documentation may be requested depending on your situation. Your lender maty also require you to pay any outstanding bills as well before closing on the home. You lender will let you know if this is required. Do not change your job, charge your credit card or affect you credit in any way, this will stop the loan process and no money will be funded. The mortgage company runs a second credit check right before lending the money, for this reason you will need to wait until after the closing for any change or purchase.
7. The Home Inspection and the Termite Inspection will be ordered. You are more than welcome to be there when the inspections are being done.
8. The lender that you chose to do your financing through will order the Appraisal. You are also welcome to be there for that as well. Survey will be ordered by the Title Company.
9. You will need to purchase homeowners insurance for a year, and provide the Declaration page to the Title Company as proof you purchased before they will allow you to close on the home. Your Insurance Company can fax a copy of that page to the Title Company.
10. Once the Home Inspection report comes back, your agent will meet with you to discuss the findings, and evaluate which items need to be repaired depending how the contract was written between the buyer and the seller. The seller will then make the requested repairs if the buyer and seller agreed that the seller would make repairs.
11. One day before closing your agent will do a final walk through of the home with you to make sure the home is in the condition it is suppose to be in and repairs were completed (if required)..
12. Your agent will go over the HUD-1 statement with you to make sure all figures are correct.
13. The Title Company will advise you of the dollar amount you need to bring to the closing in CERTIFIED FUNDS, personal checks will not be taken You will also need to bring your drivers license to closing.
14. Congratulations on the purchase of your home!!
As a reminder….It is imperative that you know what financing company will be doing your financing before you put a home under contract so the lender will have time to get all paperwork completed in a timely manner and it does not hold up the closing. The lender will also be able to provide your agent with the correct amount of closing costs so it can be written into the contract if you are expecting the seller to pay your closing costs. The more you get done ahead of time, the smoother your closing will go.
You hired a real estate agent and not a REALTOR®. Don’t get me wrong, there are plenty of great real estate agents out there that aren’t REALTORS®, but if you don’t have a REALTOR®, then you don’t have access to the MLS. Having access to the MLS is a huge must have when shopping for a home.
Your agent doesn’t return your phone calls or emails in a timely manor. How many times have you tried calling or emailing your agent for something and you don’t hear back from them for a day or two? Once? Twice? Have you lost count? Once is one time too many. Your agent should be returning your phone calls or emails as quickly as possible. I try to return all phone calls within an hour, and in most cases, it’s usually less than that.
They don’t have an email account or a cell phone. Folks, this is 2008 and if you’re working with an agent that doesn’t have an email account or a cell phone or if they do have a cell phone and everytime you call it, the voicemail box is full so you can’t leave a message, or the agent never checks their email, it’s time to call me. Not having an email account or a cell phone in today’s day and age is comparable to a REALTOR® not owning a car. How do they do business?
Your agent seems to work bankers hours M-F 9am-5pm. Ever called an agent at 6pm on a Friday night about something and they don’t answer their phone or call you back again until 9am on Monday morning? This isn’t the banking business, this is real estate. If they want to work M-F 9-5, then they need to go find another career. If your agent isn’t willing to work with you on evenings and weekends, then it’s time to find one that will work around your schedule. I understand that the majority of buyer’s work M-F 9-5 and the times they need to view homes are evenings and weekends. I work around your schedule. I will show you homes when it is convenient for you.
They aren’t a buyer’s agent. If they mainly work with sellers and have a whole lot of listings, then more than likely their focus will be on their listing inventory and not putting 100% effort into helping you find a home. A true buyer’s agent will only represent you and must be loyal to only you in a transaction.
They always seem to be too busy to show you any homes. Ever called to try and see some homes but were told they had several other appointments and didn’t have time to squeeze you in? In fact they were booked full of appointments for the next week solid. If so, they are too busy to work for you! Find someone else that has the time to show you homes and not make you feel like they need to rush you through a bunch of homes so they can make it to their next appointment on time.
They haven’t helped you get pre-approved. Have they recommended yet that you need to contact a Mortgage Broker to find out for certain how much you qualify for? No? Then dump them. Part of my job is to put you in touch with licensed Mortgage Brokers that are qualified to let you know how much of a home you can afford, what your payment and interest rate will be and how much money you will need to put down if any. This is one of the very first things that needs to be done when starting the home buying process.
They are pushy, rude or unprofessional. Is your agent pushing you to write an offer? Are they making you feel like you have to buy a home right now? Are they ever rude to you for any reason? Are they unprofessional? If you answered yes to any of those, then it’s time to call me. I am not a pushy agent. I will never make you fell like you must buy a home through me. I will never under any circumstances be rude to you and I will never be unprofessional.
They aren’t emailing you listings from the MLS. Why aren’t they? Chances are you’re missing out on new listings when they come on the market. You should be getting regular emails of every new listing that fits your criteria as soon as it comes on the market emailed to you. If you aren’t, find a new agent!
They are emailing you listings from the MLS, but the emails don’t contain the addresses. Ok, I never understood the purpose of this. Why take the time to set up a search for someone if you aren’t going to do it the right way? Why do they need to hide the addresses? Why do they feel the need to email you listings without the address? So now you have to take time to make a list of every single home you like and call the agent to get the address for it so you can drive by and check it out. What a waste of your time! I will email you anything available in the MLS and you will see the full address with it. I don’t try to hide things from anyone.
You are doing all the work. Are you the one doing all the searching and calling the agent with a list of homes you found that you want to go see? Why? That’s their job. That’s what you have hired them for. If you’re doing all the work, then it’s time to call me! Let me do the work for you.
They are constantly late for the appointments they have with you. Being late for appointments is a HUGE pet peeve of mine. It’s rude and it shows that they do not value your time. You respect my time, and I certainly respect your time. I will always be early for appointments, never late. I allow enough time in between my appointments that I don’t have to rush to get to the next one and don’t have to rush my buyer’s through a home so I can get to another appointment after yours. Being late on occasion does happen, but if it’s a regular occurrence, than it’s time to find someone that will be on time for your appointments.
You never hear from them. Is your agent MIA? Have you not heard from them since the very first day you talked to them? Do they not call or email every now and then to follow up with you? Chances are they are too busy to work with you and it’s time to find someone that will stay in touch with you.
They only show you the homes they have picked out for you and not the one’s you have picked out. Now this one, I can debate with several agents over. Many agents like to pick which listings to show you, instead of letting you see them all. What’s their excuse for this one? They want to filter out which homes they think will best suite you? Ok, why? Who’s buying the home? Them or you? I will never filter out which homes I think will best suite you. I will send them all to you and let you decide. After all, you’re the one buying the home and you’re the one spending the money, so why should I decide which homes to send you? Sometimes buyer’s will change their mind about what they want midway through the process and decide they like homes they first said they would never look at. It’s my job as your REALTOR® to show you everything that is available to you that you want to see and let you filter out the one’s you don’t like.
They won’t show you FSBO’s or New Construction. If your agent refuses to work with FSBO’s (For Sale By Owner) or New Construction, then plain and simple you need to find another agent! If you want to see a FSBO home or a New Construction listing or see what the New Constructions companies will offer you, I’m more than happy to take you!
They don’t offer to buy a Home Warranty for your new home. Every buyer that buys a home through me will get a FREE one year Home Warranty on the home they purchase.
They don’t explain the entire home buying process each step of the way to you. Part of my job as your REALTOR® is to explain every single step of the home buying process to you to ensure that you fully understand and you are comfortable. If your agent isn’t doing that, get rid of them!
They don’t explain the current market conditions to you. In the ever changing market conditions of real estate, you need a REALTOR® that will explain what the current market conditions are like, so you understand. If your agent isn’t doing this, call me!
Your agent doesn’t listen to you or about what you want. Have you explained what it is that you are looking for, but it seems to have gone in one ear and out the other because everything they email you is everything you aren’t looking for? Are they hearing you but not listening to you? If so, call me!
Your agent isn’t familiar with the area you are looking to purchase in. One of the worst things you can do is work with an agent that is totally clueless about the area. They have no clue where anything in that area is, much less to know how far those things are from a home you are interested in. They have no idea where any other subdivisions are at nearby in the area and the only reason they know where they are currently standing is because MapQuest or the GPS told them how to get there!
Your agent doesn’t go out of the way to help with things if needed. Are they not willing to go the extra mile for you when you need something you don’t have time to get? Like get a copy of a plat map from the county or pick up some documents from somewhere that need to be signed and returned in a timely manor? If not, find another agent!
Your agent is part time and not full time. Ok, I’m sure I’ll take some heat from this one from the part timers, but I don’t really care! You need an agent that works this business full time, not part time. Real estate is not a part time business. It’s not something you do from 12-3pm on Monday, Wednesday and Friday. It’s an everyday, all day job! I’m a full time agent that works my business 7 days a week if needed and as many hours as it takes!
You have to pay for their services up front. Run and run fast!
You do not feel comfortable working with your current agent. Trust your gut and your instincts. Ever been in the presence of someone that you just don’t have a good gut feeling about. Something isn’t quit right, but you just can’t put your finger on it? Ever worked with someone that made you uncomfortable in any kind of way? If so, trust your gut and drop them. Find someone else that you are comfortable with and can trust. This is a big decision, and you need to be able to comfortably communicate with your agent any fears or concerns.
Your agent doesn’t normally sell homes in your price range. Does you agent normally sell million dollar homes and you are a first time home buyer looking for a $200,000 home? The agent that normally sells million dollar homes may not put as much time and effort into finding you a home because of the price range of home you’re looking in. Find an agent that sells homes in your price range.
Your agent doesn’t provide other services to you. Is your agent not willing to schedule the termite and home inspections for you, so it’s two less things you have to worry about doing? Does your agent expect you to take the contract and escrow check to the Title Company, instead of doing it for you? Do they not have a list of preferred vendors that they can recommend to you, such as: Termite Companies, Home Inspectors, Title Companies, etc..etc..etc..If not, find one that will provide you with the extra services and can recommend vendors to you.
Your agent has no clue what he/she is doing and can’t ever seem to answer any questions you have. Does your agent seem to be totally clueless and everytime you ask them a question, the answer is “I dunno”? If so, it’s time to locate a new agent!
Your agent won’t be attending the closing once you find a house and it closes. This is something you should ask up front. Ask them if they attend the closings with their buyer’s. If they say no, then find someone else. Many problems arise at the closing table and if your agent isn’t there to make sure everything is taken care of correctly and isn’t there to answer any last minute questions, then you are getting short changed. I attend every single one of my closings. I am there all the way through to the end in case any problems arise.
Your agent isn’t willing to do a CMA of the neighborhood of a home you are interested in, to make sure you aren’t offering more than you should. This is a big one, especially in today’s market with prices changing the way that they have. Ask your agent to run a market analysis on the neighborhood and provide you with the comps so you can compare with other homes in the neighborhood. If they say no and tell you that you don’t need that, find another agent.
They show you homes that are more than you can afford. Ever had an agent show you homes that were above the price range that you want to spend? Frustrating isn’t it? Why are they dragging you to homes you can’t afford? It is wasting your time. Some agents will do this in hopes to get you to spend a little bit more money or to max you out at the top of your budget. Be careful so you don’t over extend yourself!
They won’t write up an offer for you based on the price you want to offer. Did you find a home you wanted to make an offer on, but you wanted to lowball it to see how motivated the sellers were, and the agent told you that was a waste of their time and refused to write it up? If yes, then it’s time to call me.
They aren’t familiar with all of the correct disclosures, addendums and/or the purchase contracts. Be careful in making sure that your agent has been in the business a while and also understand the purchase contract and how to fill it out and they know all of the correct disclosures and/or addendums that you will need. Ask them when you meet them if they can explain the purchase contract to you thoroughly. If they are struggling through trying to explain it to you, that means they don’t understand it. How can they explain something to you that they clearly don’t understand?
They aren’t a strong negotiator. Does your agent appear to be timid or not aggressive when needed? It could also be a sign that they are a weak negotiator. You need an agent with strong negotiating skills to ensure that you get the best deal possible.
Your agent can’t or won’t provide you with past customer or client testimonials. The either don’t have any testimonials to provide you, or they won’t provide them to you. It should raise some red flags. Any agent that has a great track record will be more than happy to provide you copies of past customer/client testimonials or names and numbers for you to call them. If your agent won’t provide them to you, yes, you guessed it. It’s time to find another agent!
PLEASE READ BELOW
*Disclaimer: Now, if you have read through this entire list and you are saying to yourself that one or more of these things apply to your current agent and now you have decided you want to find someone else, yet you haven’t signed a Buyer Brokerage Agreement (BBA) with any agent, then you are free to do whatever you want. HOWEVER, if you have signed a Buyer Brokerage Agreement (BBA) with an agent, you need to very carefully read through that BBA before you go firing your agent. There may be a cost to cancel that agreement and if you break the agreement and purchase a home that the agent you had the BBA with already showed you, then they could be due a commission. A commission that you may have to cough up. You need to carefully read through it and understand what penalties there may be if you break the agreement.
Surveys show that many homeowners and homebuyers are not aware of the true value a REALTOR® provides during the course of a real estate transaction.
Many of the most important services and steps are performed behind the scenes by either the Realtor® or the brokerage staff and traditionally have been viewed simply as part of their professional responsibilities to the client. But, without them, the transaction could be placed in jeopardy.
The REALTOR® Commitment
Through it all, the personal and professional commitment of the REALTOR® is to ensure that a seller and buyer are brought together in an agreement that provides each with a “win” that is fair and equitable.
The motivation is easy to understand. They receive no compensation unless and until the sale closes.
By contrast, there are firms that offer “limited services” in exchange for an up-front flat fee, or perhaps offer a menu of pay-as-you-go or “a la’ carte” options. Some even offer a sliding scale ranging from limited to full service. In these cases, the compensation of the REALTORr® is based on these reduced service levels with the seller bearing full responsibility for all the other steps and procedures in the selling process. In short, the marketplace truism is that “you get what you pay for.”
The Critical Role of the REALTOR®
Listed here are nearly 200 typical actions, research steps, procedures, processes and review stages in a successful residential real estate transaction that are normally provided by full service real estate brokerages in return for their sales commission. Depending on the transaction, some may take minutes, hours, or even days to complete, while some may not be needed.
More importantly, they reflect the level of skill, knowledge and attention to detail required in today’s real estate transaction, underscoring the importance of having help and guidance from someone who fully understands the process - a REALTOR®.
And never forget that REALTORS® are pledged to uphold the stringent, enforceable tenets of the REALTOR® Code of Ethics in their professional dealings with the public. Not every real estate licensee holds REALTOR® membership. Make sure yours does!
Pre-Listing Activities
1. Make appointment with seller for listing presentation
2. Send seller a written or e-mail confirmation of listing appointment and call to confirm
3. Review pre-appointment questions
4. Research all comparable currently listed properties
5. Research sales activity for past 18 months from MLS and public records databases
6. Research “Average Days on Market” for this property of this type, price range and location
7. Download and review property tax roll information
8. Prepare “Comparable Market Analysis” (CMA) to establish fair market value
9. Obtain copy of subdivision plat/complex lay-out
10. Research property’s ownership & deed type
11. Research property’s public record information for lot size & dimensions
12. Research and verify legal description
13. Research property’s land use coding and deed restrictions
14. Research property’s current use and zoning
15. Verify legal names of owner(s) in county’s public property records
16. Prepare listing presentation package with above materials
17. Perform exterior “Curb Appeal Assessment” of subject property
18. Compile and assemble formal file on property
19. Confirm current public schools and explain impact of schools on market value
20. Review listing appointment checklist to ensure all steps and actions have been completed
Listing Appointment Presentation
21. Give seller an overview of current market conditions and projections
22. Review agent’s and company’s credentials and accomplishments in the market
23. Present company’s profile and position or “niche” in the marketplace
24. Present CMA Results To Seller, including Comparables, Solds, Current Listings & Expireds
25. Offer pricing strategy based on professional judgment and interpretation of current market conditions
26. Discuss Goals With Seller To Market Effectively
27. Explain market power and benefits of Multiple Listing Service
28. Explain market power of web marketing, IDX and REALTOR.com
29. Explain the work the brokerage and agent do “behind the scenes” and agent’s availability on weekends
30. Explain agent’s role in taking calls to screen for qualified buyers and protect seller from curiosity seekers
31. Present and discuss strategic master marketing plan
32. Explain different agency relationships and determine seller’s preference
33. Review and explain all clauses in Listing Contract & Addendum and obtain seller’s signature
Once Property is Under Listing Agreement
34. Review current title information
35. Measure overall and heated square footage
36. Measure interior room sizes
37. Confirm lot size via owner’s copy of certified survey, if available
38. Note any and all unrecorded property lines, agreements, easements
39. Obtain house plans, if applicable and available
40. Review house plans and make copy
41. Order plat map for retention in property’s listing file
42. Prepare showing instructions for buyers’ agents and agree on showing time window with seller
43. Obtain current mortgage loan(s) information: companies and & loan account numbers
44. Verify current loan information with lender(s)
45. Check assumability of loan(s) and any special requirements
46. Discuss possible buyer financing alternatives and options with seller
47. Review current appraisal if available
48. Identify Home Owner Association manager if applicable
49. Verify Home Owner Association Fees with manager - mandatory or optional and current annual fee
50. Order copy of Homeowner Association bylaws, if applicable
51. Research electricity availability and supplier’s name and phone number
52. Calculate average utility usage from last 12 months of bills
53. Research and verify city sewer/septic tank system
54. Water System: Calculate average water fees or rates from last 12 months of bills )
55. Well Water: Confirm well status, depth and output from Well Report
56. Natural Gas: Research/verify availability and supplier’s name and phone number
57. Verify security system, current term of service and whether owned or leased
58. Verify if seller has transferable Termite Bond
59. Ascertain need for lead-based paint disclosure
60. Prepare detailed list of property amenities and assess market impact
61. Prepare detailed list of property’s “Inclusions & Conveyances with Sale”
62. Compile list of completed repairs and maintenance items
63. Send “Vacancy Checklist” to seller if property is vacant
64. Explain benefits of Home Owner Warranty to seller
65. Assist sellers with completion and submission of Home Owner Warranty Application
66. When received, place Home Owner Warranty in property file for conveyance at time of sale
67. Have extra key made for lockbox
68. Verify if property has rental units involved. And if so:
69 *Make copies of all leases for retention in listing file
70. *Verify all rents & deposits
71. *Inform tentants of listing and discuss how showings will be handled
72. Arrange for installation of yard sign
73. Assist seller with completition of Seller’s Disclosure form
74. “New Listing Checklist” Completed
75. Review results of Curb Appeal Assessment with seller and provide suggestions to improve salability
76. Review results of Interior Decor Assesment and suggest changes to shorten time on market
77. Load listing into transaction management software program
Entering Property in Multiple Listing Service Database
78. Prepare MLS Profile Sheet — Agents are responsible for “quality control” and accuracy of listing data
79. Enter property data from Profile Sheet into MLS Listing Database
80. Proofread MLS database listing for accuracy - including proper placement in mapping function
81. Add property to company’s Active Listings list
82. Provide seller with signed copies of Listing Agreement and MLS Profile Sheet Data Form within 48 hours
83. Take additional photos for upload into MLS and use in flyers. Discuss efficacy of panoramic photography
Marketing The Listing
84. Create print and Internet ads with seller’s input
85. Coordinate showings with owners, tenants, and other Realtors®. Return all calls - weekends included
86. Install electronic lock box if authorized by owner. Program with agreed-upon showing time windows
87. Prepare mailing and contact list
88. Generate mail-merge letters to contact list
89. Order “Just Listed” labels & reports
90. Prepare flyers & feedback faxes
91. Review comparable MLS listings regularly to ensure property remains competitive in price, terms,conditions and availability
92. Prepare property marketing brochure for seller’s review
93. Arrange for printing or copying of supply of marketing brochures or fliers
94. Place marketing brochures in all company agent mail boxes
95. Upload listing to company and agent Internet site, if applicable
96. Mail Out “Just Listed” notice to all neighborhood residents
97. Advise Network Referral Program of listing
98. Provide marketing data to buyers coming through international relocation networks
99. Provide marketing data to buyers coming from referral network
100. Provide “Special Feature” cards for marketing, if applicable
101. Submit ads to company’s participating Internet real estate sites
102. Price changes conveyed promptly to all Internet groups
103. Reprint/supply brochures promptly as needed
104. Loan information reviewed and updated in MLS as required
105. Feedback e-mails/faxes sent to buyers’ agents after showings
106. Review weekly Market Study
107. Discuss feedback from showing agents with seller to determine if changes will accelerate the sale
108. Place regular weekly update calls to seller to discuss marketing & pricing
109. Promptly enter price changes in MLS listing database
The Offer and Contract
109. Receive and review all Offer to Purchase contracts submitted by buyers or buyers’ agents.
110. Evaluate offer(s) and prepare a “net sheet” on each for the owner for comparison purposes
111. Counsel seller on offers. Explain merits and weakness of each component of each offer
112. Contact buyers’ agents to review buyer’s qualifications and discuss offer
113. Fax/deliver Seller’s Disclosure to buyer’s agent or buyer upon request and prior to offer if possible
114. Confirm buyer is pre-qualified by calling Loan Officer
115. Obtain pre-qualification letter on buyer from Loan Officer
116. Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date
117. Prepare and convey any counteroffers, acceptance or amendments to buyer’s agent
118. Fax copies of contract and all addendums to closing attorney or title company
119. When Offer to Purchase Contract is accepted and signed by seller, deliver to buyer’s agent
120. Record and promptly deposit buyer’s earnest money in escrow account.
121. Disseminate “Under-Contract Showing Restrictions” as seller requests
122. Deliver copies of fully signed Offer to Purchase contract to seller
123. Fax/deliver copies of Offer to Purchase contract to Selling Agent
124. Fax copies of Offer to Purchase contract to lender
125. Provide copies of signed Offer to Purchase contract for office file
126. Advise seller in handling additional offers to purchase submitted between contract and closing
127. Change status in MLS to “Sale Pending”
128. Update transaction management program to show “Sale Pending”
129. Review buyer’s credit report results — Advise seller of worst and best case scenarios
130. Provide credit report information to seller if property will be seller-financed
131. Assist buyer with obtaining financing, if applicable and follow-up as necessary
132. Coordinate with lender on Discount Points being locked in with dates
133. Deliver unrecorded property information to buyer
134. Order septic system inspection, if applicable
135. Receive and review septic system report and assess any possible impact on sale
136. Deliver copy of septic system inspection report lender & buyer
137. Deliver Well Flow Test Report copies to lender & buyer and property listing file
138. Verify termite inspection ordered
139. Verify mold inspection ordered, if required
Tracking the Loan Process
140. Confirm Verifications Of Deposit & Buyer’s Employment Have Been Returned
141. Follow Loan Processing Through To The Underwriter
142. Add lender and other vendors to transaction management program so agents, buyer and seller can track progress of sale
143. Contact lender weekly to ensure processing is on track
144. Relay final approval of buyer’s loan application to seller
Home Inspection
145. Coordinate buyer’s professional home inspection with seller
146. Review home inspector’s report
147. Enter completion into transaction management tracking software program
148. Explain seller’s responsibilities with respect to loan limits and interpret any clauses in the contract
149. Ensure seller’s compliance with Home Inspection Clause requirements
150. Recommend or assist seller with identifying and negotiating with trustworthy contractors to perform any required repairs
151. Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed
The Appraisal
152. Schedule Appraisal
153. Provide comparable sales used in market pricing to Appraiser
154. Follow-Up On Appraisal
155. Enter completion into transaction management program
156. Assist seller in questioning appraisal report if it seems too low
Closing Preparations and Duties
157. Contract Is Signed By All Parties
158. Coordinate closing process with buyer’s agent and lender
159. Update closing forms & files
160. Ensure all parties have all forms and information needed to close the sale
161. Select location where closing will be held
162. Confirm closing date and time and notify all parties
163. Assist in solving any title problems (boundary disputes, easements, etc) or in obtaining Death Certificates
164. Work with buyer’s agent in scheduling and conducting buyer’s Final Walk-Thru prior to closing
165. Research all tax, HOA, utility and other applicable prorations
166. Request final closing figures from closing agent (attorney or title company)
167. Receive & carefully review closing figures to ensure accuracy of preparation
168. Forward verified closing figures to buyer’s agent
169. Request copy of closing documents from closing agent
170. Confirm buyer and buyer’s agent have received title insurance commitment
171. Provide “Home Owners Warranty” for availability at closing
172. Review all closing documents carefully for errors
173. Forward closing documents to absentee seller as requested
174. Review documents with closing agent (attorney)
175. Provide earnest money deposit check from escrow account to closing agent
176. Coordinate this closing with seller’s next purchase and resolve any timing problems
177. Have a “no surprises” closing so that seller receives a net proceeds check at closing
178. Refer sellers to one of the best agents at their destination, if applicable
179. Change MLS status to Sold. Enter sale date, price, selling broker and agent’s ID numbers, etc.
180. Close out listing in transaction management program
Follow Up After Closing
181. Answer questions about filing claims with Home Owner Warranty company if requested
182. Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied
183. Respond to any follow-on calls and provide any additional information required from office files.
*Reprinted with permission from the Orlando Regional REALTOR® Association.
Sure you’re thinking “Why do I need an agent? I’ll just use the agent or sales consultant at the New Construction office.”
Well….you better reconsider that option!!
That agent or sales consultant works for the builder. So who do you think that agent or sales consultant really represents? Let me give you a hint….not you! Those agents are going to have the builders best interest at hand, not yours.
Commissions are paid for by the seller (the builder). You save no money by going directly through the builder without an agent. Commissions are already built into the price of the home automatically. They do not reduce the price of the home because you didn’t bring an agent with you and they can not rebate that money back to you because you aren’t licensed. So you see….it costs you nothing, yet by using your own agent instead of the builders, you will have full representation.
Did you know that you also waive all of your rights for representation as soon as you sign the initial paperwork without a buyers agent present?
If you are out and about “just looking” and sign in, but fail to produce your agent the first time you sign in….means you probably just waived your right for Representation. Most builders will only pay your agents commission only if your agent is with you the first time you sign in! This is why it is important that you take your agent with you any time you are “just looking” at New Construction. Resist the urge to “just go take a quick look” at a development if your agent is not present with you…or it could cost you the chance to be represented. Many builders will try to “lock you in” by having you register as soon as you visit their sales office. Do not sign anything! Do not give them even so much as your last name, (or they may attempt to register for you) unless your agent is present with you!
By using your own agent, you will have someone there for you to negotiate the price, terms or upgrades for you. Someone to follow up on the progress of the building of the home and make sure they are building what they promised you and someone representing you at NO CHARGE!
Using the builder’s agent is like asking a prosecuting attorney to also defend you…..in the same court case!
There are quite a number of expenses that you will incur when purchasing a home that make up your closing costs.
Closing costs typically range anywhere from 3%-6% of the purchase price, depending on the loan you’re getting. The fees vary from one company to the next, so it’s best to actually get a a copy of a Good Faith Estimate from your lender.
Typically, the lender will allow the seller to contribute 3%-6% of the purchase price towards your closing costs. Make sure you’re working with an agent that will negotiate on your behalf to have most of or all of these expenses paid for by the seller, depending on what your lender will allow.
All of the fees may or may not apply to you.
Fees Related To Your Loan/Lender
Loan Origination fee
Loan Discount
Appraisal
Credit Report
Lender’s Inspection Fee
Assumption Fee
Underwriting Fee
Flood Certification
Processing Fee
Application Fee
Points
Tax Service Fee
Mortgage Broker Fee
Interest From The Date You Move In, Until The 1st Day Of The Following Month
Mortgage Insurance Premium
Hazard Insurance Premium
Flood Insurance Premium
Title Fees
Closing Fee
Title Search
Title Exam
Title Insurance
Document Preparation
Notary Fees
Attorney Fees
Title Insurance Binder
Closing Fee
Wire Transfer Fee
Courier Fee
Mortgage Package Handling Fee
Record Fee
Other Endorsements
Administration Fee
Reserves Required By The Lender For Escrow
Hazard Insurance
Mortgage Insurance
City Property Taxes
County Property Taxes
Flood Insurance
HOA Dues
Government Fees
Home Inspection
Termite Inspection
Mold Inspection
Radon Inspection
Septic Inspection
Lead-Based Paint Inspection
Survey
Home Warranty
HOA Transfer Fee
HOA Application/Background Check
Escrow Deposit
Down Payment
Misc Expenses
If you have any bad debts such as a bill in collection, they may require you to pay it off prior to closing. Check with your lender.
One last tip: Whatever dollar amount that you need to bring to closing NEEDS to be in the form of a Certified Check made payable to the Closing Company/Attorney’s office! They will not take cash or a personal check!
There comes a time over the course of any renter’s time in a particular piece of real estate where it seems that the payments are providing a great stream of income for a landlord but little for you. Indeed, as incomes begin to creep up and the ability to handle at least a portion of a mortgage becomes a possibility, more and more renters are beginning to feel that way and enlist a friend to make their home ownership dreams happen.
There is a time in life where particular income levels can outgrow renting but perhaps be too small to take on a full mortgage. As a way to either bridge that gap or land a home above a single person’s income level, friends are beginning to team up in greater numbers to operate as co-owners on a home. As with any real estate transaction, these deals require a bit of care and, more importantly, asking some tough questions of yourself and your prospective co-owner.
Why Do You Think Co-Ownership Is For You?
Everyone that ponders co-ownership needs to be sure about why it seems like a good idea. Problems can arise when you and your friend are not on the same page about the benefits you hope to see through co-ownership and that discord can harm the search for an actual home.
Are you looking for tax benefits on the new property? Are you looking to upgrade your surroundings by sharing the mortgage burden? Are you hoping to build equity and sell the home in five years? These types of motivations are common and the only way to be sure that you and your prospective co-owner are on the same page is to go ahead and ask them. It may seem silly, but this step has to come before ever going to a showing or looking at an open house as your target will change based on what you are trying to accomplish.
What Happens If You Get That Dream Job Offer?
Any plan needs contingencies and getting involved with a co-owner is no different. What happens if you get the job offer of a lifetime in a different state? Discussion needs to take place about the possible options that face both of you if one of you decides to leave town. There are a number of options available should that occur.
Of course you can both go your separate ways and sell the house but sometimes this ruins your goal of building equity if that is what you set out to do. Another option is to buy out your friend and pursue someone else as a new co-owner. No matter what your decision, it should be made before ever getting involved in the transaction to ensure a seamless transition should the time come.
How Much Do I Trust You?
While it may seem crass to ask this in regards to how you feel about your prospective housemate, the fact of the matter remains that a significant portion of your financial future is tied up with this person. If you have doubts about whether your friend has the ability to make regular payments, that should send up a red flag and end the discussion there.
Often, the loans given in these types of situations make both parties entirely liable for the entirety of the loan. That means if your friend skips town without paying, your bank can hold you solely liable for the entire balance of the loan, not the half you planned on paying. Be sure of who you get involved with for co-ownership as it could save you financial headaches in the future.
Co-ownership can be a great way to solve the problem of wasting money on rent and wanting to build equity without the income level to do so. However, before ever traveling down that path, you need to ask you and your prospective housemate these questions to make sure that you aren’t getting in over your head. Stay careful and you will ultimately find the right living situation for you.
So you’ve got your new home picked out and you’re ready to embark upon the long process of securing a home loan and ultimately taking ownership of your dream home. Armed with that excitement, you take to the Internet in hopes of uncovering a hidden interest rate nugget, that low rate that other people have overlooked and that you have found through persistence and effort. Well, as you embark on that trip, there are some things to keep in mind during the pursuit for the lowest interest rate possible.
There are probably thousands of web sites offering financial data that can be pertinent to your search, so it is important to quickly cut through them all and pick one that seems to be at least somewhat reputable and has easy-to-access information. You’ll probably want to focus your search on a 30-yeark, fixed-rate mortgage to get a barometer of the interest rate climate initially.
There are many sites out there that will go into detail on interest rate fluctuation but finding one with graphs that can show you the trend of that rate over time will provide you with a great piece of ammunition when trying to determine what the short term market might do and what kind of interest rate would, in the end, be a good one for the time frame you’re looking at.
In addition, there are scores of financial articles written every day about the state of the real estate market and doing some reading on the current state of the market will help you greatly in your pursuit for a low interest rate. Sites like the Wall Street Journal online and other respected newspapers usually publish their full financial sections online. Google News and other outlets can additionally offer a slew of recent financial articles with a search or two.
Each loan has its own special set of financial aspects, so comparing them can be difficult at first glance. Thankfully, there are sites out there that will do it for you and doing a search for financial loan comparisons will give you a few good results. By putting in some information about you and your financial status, you can get some loan offers back that are tailored to your situation and can be compared against each other. This is a great step to help save time that might otherwise be spent deciphering the many loan options available through a multitude of lending agencies.
Finally, be thorough in your search. If you are truly looking to get a full picture of the loans available to you, contacting your local institutions (banks and credit unions) is a great step in the process and sometimes the added benefit of supporting local business or having a nearby branch office can make up for an interest rate shortcoming. It is up to you to assign priority to something like that.
Interest rates are important but while you’ve set out to pursue the lowest rate possible, you might find that there are other benefits you haven’t considered that are important as well. These aspects should also make their way into your loan comparison as things like convenience, reliability and other factors differ from lender to lender. Decide what is important to you and what concessions you would make to accommodate one of those other desires.
Finding the lowest interest rate possible is a noble goal and with the avalanche of online information at the fingertips of anyone with an Internet connection, finding that rate is easier now that in the past. However, as you go through your search, keep in mind that a mortgage is more than just an interest rate and remain open to other benefits that might offset a bit of a higher rate.
When a home buyer gets involved with buying a home, thoughts usually tend to center on staying in that home for a lengthy period of time, building both a family and equity. However, as we all know, your life can change in an instant and you never know when the next great job offer or life change will be presented, prompting you to leave town and seek a new beginning. It is those opportunities that prepayment penalties prey on and you should be well aware of what you’re getting in to if they are a feature of your mortgage.
Prepayment penalties typically state that if you decide to pay off the balance of your mortgage within a period of time (generally a few years from the start of the mortgage), you agree to pay a sort of penalty that is usually derived as some percentage of the interest on your mortgage over a period of time. The penalties serve loan agencies well as they seek to get some profit out of your loan even though an owner has decided to end it early, but they do a disservice to the home owner.
Naturally, you should be aware of all of the aspects of your home loan, but the section discussing prepayment penalties is perhaps one area to pay special attention to. These penalties can cost as much as a handful of monthly payments, so they do represent a significant cost. Every loan is negotiable and it is up to you and your realtor to make prepayment penalties at the very least a topic of discussion.
Much of the time, eliminating the prepayment penalty from your loan may be too difficult or the bank may ask for too much in return, so negotiating down the lengths and amounts involved could be a workable solution for both sides. Negotiating a smaller window of penalty or a smaller amount of penalty can at least make you feel that you’ve addressed the situation and if you negotiate down the window enough, can probably make you feel safe from having to pay a penalty.
If you are currently paying on a mortgage with a prepayment penalty and have a lot of that time window left to go, you may think about getting creative with how you deal with the penalty should you have to endure it. If you have a new home with new financing set up, you can elect to roll that prepayment penalty cost into the amount of your new loan to possibly get interest benefits if rates have gone down.
You can also contact your lender or real estate agent if the window is close to expiring but not fully up to see if the cost can be waived and, if so, what the bank would want in return. Perhaps financing a new property through the same bank will entice them to waive the prepayment penalty in favor of getting your repeat business. You’ll never know until you ask or your realtor pursues the matter, so it is always best to at least give it a try.
As with every step of the home buying and home ownership process, having full information with leave you better equipped to make decisions in the future. There are hundreds of little items that must be at least thought about and the presence of a prepayment penalty in your mortgage is one such item. Ask the right questions and make some attempt to negotiate down the terms of the penalty if your lender insists on making prepayment penalties a part of the mortgage. You’ll be glad later if a life-changing opportunity comes along later and you are free to pursue it without enduring the added cost of mortgage prepayment penalties.
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