Buyer's guide

We will either have an initial conversation with you in person, over the phone, or via internet call. The first thing we will discuss is a document entitled ”Information About Brokerage Services” which explains agency and how we represent you in your upcoming purchase. In order to represent you in purchasing a home, we will need you to sign a Buyer’s Agency Agreement setting out the terms of areas where we will be showing you homes, terms, timing, and compensation. We will go over this document with you carefully making sure you understand and are in agreement with the terms.

I will ask you several questions and have you tell me as much as possible about your wants and needs in a property. We will also discuss your budget determining if you have gotten any type of a pre-approval letter (if using a loan) or proof of funds (if using cash proving you have enough liquid cash). The first step in starting our search is acquiring one of these two items.

I will use your criteria to search the MLS (multiple listing service) for properties matching your needs. It would be wonderful to find all of the things you want in a home, but with limited inventory there are probably concessions that will need to be made. Once you review the list, I can schedule showings to go look in person.

If the first list of homes I pull doesn’t lead us to a house that you like enough to put in an offer, I can create an “auto email” for you through HAR. This means you will receive an email any time a house comes on the market matching your criteria. We then can look as soon as possible to see if you’d like to offer.

Before we write an offer, we will thoroughly look at details such. as upgrades, replacement of items like HVACs, water heaters, appliances, roofs, windows, etc. The reason we check windows as well as these other items is to see if the home has double or single paned windows. Double paned windows are more energy efficient and more expensive.

We will pull up comparable properties in the area or in similar neighborhoods close-by creating a CMA (comparable market analysis) in order to get an accurate assessment for a reasonable offer. I will also send a link for you to be able to look through these comps noting any aesthetic or mechanical
updates.

If you are ready to place an offer, there are several terms that you need to decide on including down payment, how much you’ll be financing, option fee, option period, earnest money (1% of price), closing date, and any other seller concessions such as home warranties, assistance in closing costs, or other
requests, etc. We will go through each of these items together.

I will counsel with you and help you make a decision on whether you will pay list price, under, or over. The recent markets have been so competitive with multiple buyers in many instances bidding on the same home. This will be entirely your decision since it could mean you might be paying above “market value” and with a mortgage, you may have to make up any difference in appraised value and sales price.

Among the forms we use most often is an appraisal waiver addendum. This form will give you the opportunity to limit your liability in the event the appraisal doesn’t meet sales price. Appraisals must “meet” sales price and not just loan amount. On the form you will have three choices IF appraisal addenda was used:
a - waive the appraisal and make any differences with no limits if the appraisal comes in low
b- put in an amount below offer price where you will agree to pay the difference in the case that the appraisal does come in low. Again, this will be your decision as to how much liability you want to assume making up the difference in appraised value and sales price.
c - require it appraises for sales price

Once you have decided on all terms, I will prepare the offer for your review. I will send a cover sheet pointing out any details or explanations you may need. After you review the offer, we will send it to you via DocuSign or Authentisign for signature. Once we receive it back from you with all signatures, we will send it to the listing agent. We will need to send along your pre-approval letter or proof of funds to the listing agent at the same time.

EXECUTED DATE OF CONTRACT:
Hopefully, we will get an agreed to contract with the sellers signing their side of the offer. When the last person signs the contract, the executed date will be put on the contract and this begins all important timelines counting the next day as day 1 for counting purposes.

After the contract is signed by all parties, you will need to send your earnest money and option fee to the title company either by writing a check to the title company or most often wiring funds. We will assist you in getting secure wiring instructions for the transfer. Typical earnest money is 1% of the contract price and typical option fees are between $200-$500. This must be done within three days of the executed date of the contract.

Our first important timeline is the option period. As part of the offer, we put how many days you will have to do your due diligence such as having inspections done on the property. We have a list of inspectors that we can provide you to choose from that we have dealt with and find acceptable. During this time (usually 7-10 days) you can do any additional research and tests you might feel are needed. During the option, you have the unrestricted right to terminate the contract for ANY reason. Most often, buyers move forward after the option. If there is a reason that you feel you must terminate, all you will lose is the option fee- not the earnest money. After inspections, we will go over the report with you and create a list of any repairs you expect the seller to address prior to closing. Repairs are negotiated just as the price was with seller and buyer finally reaching an agreement and ending the option period.

If you are taking a mortgage out for final payment of the home, they will spend the time allowed on the contract (generally 21-30 days) to complete the loan process. During this time, we follow-up with your loan company including the appraisal urging the mortgage company to get the appraisal done as quickly as possible in case of any problems. The earnest money contract gives the mortgage company up to 3 days prior to closing to complete the appraisal process, but this can create problems if there is a problem with the appraisal. We like to have this done sooner so will push to get this done.

The title company will do all of their research in order to deliver a title insurance policy for you at closing. The mortgage company will be busy at the same time gathering all of the information they need to approve your loan. You will need to have your insurance policy at this point. We will be following up on all timelines and items needed for a successful closing including making sure all repairs agreed to are done prior to closing and walk thru. You will need to cooperate with the mortgage company giving them as quickly as possible all the information they will need for final approval. When everything is completed for your loan, we will set a closing time and a time to walk through prior to closing (usually within 24 hours prior to closing). We will ask you to sign a buyer’s walk-through form stating that you are accepting the home as is.

Once all conditions are met you will receive closing docs (sometimes referred to as the CD) ahead of closing from your mortgage company prior to seeing the final closing statement with all fees on it from both title and mortgage. You will need to have your funds ready to wire to title or in some cases you can bring a CASHIERS CHECK (not the same as a certified check). There will never be anyone giving you wiring instructions except the title company. Even if you receive wiring instructions from title (or looking like it came from title) confirm with the title company that it is from them. Wire fraud is an ongoing problem in our business so we urge you over and over to be careful receiving these instructions.

For the closing, you will need to bring picture Identification for the closer to notarize your closing papers. The title company will file the deed and other documents with the county court clerk. As long as your funds are at the title company along with the mortgage company’s funds, (if you have a loan) and both buyer and seller have signed, the home is considered funded and the home is now yours. At this time you will receive keys, warranties, if any, alarm and other codes, garage door openers, and any other items that should go with the home. We also ask the sellers to provide you with any information you might need such as their lawn company, pool company mailbox number and any other items you need to know about the home.

The sellers do not have to receive their funds for the home to be considered “funded”, Obviously it is preferable so we try to arrange closings in the morning so that the seller can receive their funds the same day. The “cutoff” for wiring seller’s funds to them is usually around 2 p.m.

Congratulations, you have now bought a home. The title company will give you copies of closing documents and usually homestead exemption forms to file for your homestead exemption. We will also send these forms after closing as a reminder to do this so that you can get any benefits of the homestead exemption.