• Public schools

• Shopping areas

• Public facilities, such as parks, theaters, community centers

• Convenient commuting options

• Well-maintained homes

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ltest scores low or dropping

ly maintained or vandalized buildings

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• School district

• Neighborhood aesthetics

• Amenities

• Traffic

• Walking distance to restaurants or a supermarket

• How close to or far from a highway you want to be

• How much traffic you will have to deal with

• Appearance of other houses and yards on the street

• Street filled with parked cars

• Noisy neighborhood

• Number of stories

• Bathroom locations

• Covered entryway

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• Strength of the foundation

• Age of the wiring

• Pest damage

• Future repair costs

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Here are seven things to ask about when attending an open house:

previous offers on the home

Appliances and fixtures beingsold withthe house

Specialcosts of ownershipattached to the property

Comparison to other homes on the street

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Comparing homes and determining their value is very challenging. The same goes for contract terms, financing options, inspection requirements and closing costs. The complexity of forms, financing, inspections, marketing, pricing and negotiating is so difficult that some people make it a fulltime job to help you buy a home. Those people are real estate agents.

The right time to choose a real estate agent is after you have done your own preliminary assessment of what you want and need — or perhaps beforehand. In addition to showing you homes, the real estate agent can help you narrow your parameters and offer suggestions on locations and home features that you may not have thought of. A real estate agent can be of invaluable service when you’re undertaking such a major commitment as owning a home.

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Choose an Agent

1. How long have you been licensed as an agent?

2. Do you work part-time or full-time?

3. Have you received any awards or certifications?

4. How can we keep in touch?

5. What’s your communication style?

It’s also important to consider an agent’s knowledge of technology. As the Internet continues to simplify the way people do research on buying or selling their home, there are many good reasons to choose an agent who can harness the power of technology to provide you with exceptional service. A tech-savvy agent can:

• Send up-to-date information by email for you to review at your convenience.

• Provide you with an online home valuation so you can stay on top of current market value.

• Forward new home listings to you as soon as desirable properties hit the market.

• Deliver e-newsletters to keep you informed about market trends and other valuable pointers.

• Showcase your home on the Web to help you sell it for top dollar.

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The MLS is divided into regions; there is no “national” listing database. Your local real estate professionals access and update your area’s MLS so you receive only local information. Agents use information in the MLS to generate a comparable market analysis to help in setting the price foryour home.

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H OMEOWNER SUR V I V A L G UIDE s 24 Make an Offer

Real estate agents handle the steps that need to be taken during the purchase process. In many states certain disclosure laws must be complied with by the seller, and the real estate agent will ensure that this takes place.

If you are not working with a real estate agent, you must draw up a purchase offer or contract that conforms to state and local laws and that incorporates all of the key items. State laws vary, and certain provisions may be required in your area.

After the offer is drawn up and signed, it will usually be presented to the seller by your real estate agent, by the seller’s real estate agent if that’s a different agent, or often by the two together. In a few areas, sales contracts are typically drawn up by the parties’ lawyers.

• Address and sometimes a legal description of the property

• Sale price

• Terms — for example, all cash or subject to your obtaining a mortgage for a given amount

• Seller’s promise to provide clear title (ownership)

• Target date for closing (the actual sale)

• Amount of earnest money deposit accompanying the offer, and whether it’s a check, cash or promissory note, and how it’s to be returned to you if the offer is rejected — or kept if you back out for no good reason

• Method by which real estate taxes, rents, fuel, water bills and utilities are to be prorated

• Provisions about who pays for title insurance, survey, termite inspections, etc.

• Type of deed to be given

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• Contingencies

• A time limit after which the offer will expire

• Financing: The buyer must get specific financing from a lending institution. If the loan can’t be found, the buyer won’t be bound by the contract.

• Home inspection: A satisfactory report by a home inspector “within 10 days (for example) after acceptance of the offer.” The seller must wait 10 days to see if the inspector submits a report that satisfies you. If not, the contract would become void.

If the seller likes everything except the sale price, the proposed closing date, or the chandelier you want left with the property, you may receive a written counteroffer with the changes the seller wants. You can accept or reject it, or even make your own counteroffer. For example, “We accept the counteroffer with the higher price, except that we still insist on having the chandelier.”

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When you find the home you want, you will write a contract, either through your agent or your attorney. Your offer should spell out what you are willing to pay for and what you are not, when you want to close, and when you want to take possession of the home. Your contract may be contingent upon getting an inspection and evaluating the results. If the inspection reveals a big problem, you and the seller can renegotiate the purchase price if you are still interested in buying.

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• You’re an all-cash buyer; or

• You’re already pre-approved for a mortgage; and

• You don’t own a house that has to be sold before you can afford to buy.

In those circumstances, you may be able to negotiate some discount off the listed price. On the other hand, in a “hot” seller’s market, if the perfect house comes on the market, you may want to offer the list price (or more) to beat out other early offers.

It’s very helpful to find out why the house is being sold and whether the seller is under pressure. Keep these considerations in mind:

• Every month a vacant house remains unsold represents considerable extra expense for the seller;

• If the sellers are divorcing, they may just want out quickly; and

• Estate sales often yield a bargain in return for a prompt deal.

What’s more, knowledge is power. You and your real estate agent may be able to get a better deal by doing a little research on the home you’d like to buy. When you’re ready to make an offer, find out the following information:

Other offers on the property

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Motivation of the seller

Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiations.

litems included in the sale

ge of sold properties in the area

Average time on market for properties in the area

le price ratio in the area

Average sales price per square foot of recent solds

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Lead Paint, Hazardous or Toxic Materials. In purchasing any home you may wish to conduct special tests to determine the presence of toxic or hazardous materials. These include lead paint, radon, airborne asbestos, urea formaldehyde foam insulation (“UFFI”), oil spillage etc.

Fair Housing Laws. Real estate agents and sellers are required by federal law to treat all parties in a property transaction equally and without regard to race, color, national origin, religion, gender, sexual preference, age, marital status, presence of children, military service/veteran status or receipt of public assistance or physical or mental disabilities.

Right to Have All Offers Presented. By law, real estate agents are required to present all offers to a seller. Normally real estate agents will not solicit buyers or continue to show property after acceptance of an offer, unless otherwise agreed. Even if you make an offer for the full listing price, you cannot legally require the seller to accept it.

Nature of Seller’s Duties to Condition of the Property. Every seller has the duty to respond fully and accurately to any request for information about a property. This is true whether the information is requested directly by you or by a real estate agent who, in turn, may pass along the information to you. Answers that are misleading or are half-truths are improper. If a seller is unsure of information, the seller should not guess, but should qualify his answer. Otherwise, you may be misled.

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Deposit By The Buyer. It is customary for you to give a deposit as a show of good faith when an offer is presented. Normally this deposit is held in escrow, then deposited when the seller has accepted your offer.

Mortgages and Financing Contingency. If it will be necessary to obtain institutional financing for the purchase, you must fall within the lender’s guidelines to qualify for a loan. Loan packages, mortgage interest rates, points (pre-paid interest or administrative fees) and terms vary from one financial institution to another and will be adjusted from time to time. If institutional financing for a purchase is required, you may wish to make an offer contingent upon receipt of a mortgage commitment within a specified period of time. Careful compliance with the exact conditions in a mortgage contingency clause is crucial.

Title Examination and Title Insurance. Most banks and mortgage lenders require that an examination of the seller’s title to the property be conducted to determine if the property is marketable and will provide adequate security for the loan it is making. Lenders generally require title insurance up to the amount of the loan and for an additional fee, title insurance can be obtained to protect the portion of the purchase price that the buyer paid.

Zoning and Building Code Compliance. Zoning refers to the right of a local city or town to regulate the use of a particular property. It can include whether the use may be residential, commercial or industrial; the number of dwelling units which may be located on a lot; the minimum lot size; the minimum amount of street frontage; the minimum distance a structure must be set back from the street, from the side lot line or from the rear lot line. Structures which conformed to zoning at the time they were built may be “grandfathered” in under current zoning, while structures which did not conform when built usually require a “variance” from the city or town to be legal.

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Schools are an important aspect of the neighborhood as well—if not for you, then for future buyers of your home. Research test scores and other school statistics, then talk to parents and students to hear personal accounts of schools in the area.

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gent choice

Buying a home is a challenge that can be made more difficult if you choose the wrong agent. You want an agent working on your behalf who understands your needs and financial limitations. Ask for references from friends who have recently bought a home. Interview three agents, and ask to see their activity lists, which list every property the agent has helped to sell or buy in the past year. Do research to ensure that the agent is experienced in the neighborhood where you want to live and the price range that you’re looking for.

Not double-checkingthe neighborhood

Buyingthe most expensive home on the block

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e Escrow Process (diagram needs to be remade)submit mortgage applicationloan processing starts—property appraisalloan approval—remove loan contingenciesschedule inspections / receive and review disclosurescounter offers negotiatedreview inspection reports and make request for repairs, if appropriateestablish a game plan with agentget set up on “daily hotsheet” email notification systemremove inspection and other contingenciesconsultation with agent to analyze your wants and needsmeet with mortgage brokerobtain loan pre-qualification or pre-approvalmarket education —view propertiesselect a home to buy and write an offer to purchaseacceptance of contractopen escrow — deposit earnest moneyreceive escrow instructionstitle search — preliminary reportarrange for homeowner’s insurancefinal walkthrough inspectionloan funding — record titledeposit balance and closing costs to escrow—sign closing documents and loan papersset up transfer of utilities into buyer’s name—to be effective on day of closingclose escrow — get the keysWelcome Home!

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Here are some things to consider when making a move:

• Get a binding estimate from the moving company. Make sure the amount is written in the contract.

• Check the local Better Business Bureau to learn the moving company’s history.

• Check your existing renter’s policy to see if it covers moving damages.

• Make sure the contract guarantees how many hours the move will take, allowing an overrun of no more than 10%.

• Watch loading and unloading and examine all furniture and boxes of fragile items carefully before signing a receipt.

• Make a complete inventory of your belongings before you pack.

• Get Moving Quotes

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— Take advantage of the empty cabinets to clean out crumbs, and take care of the lining.

Bathrooms

 

— Check the drains and do the standard cleaning.

Walls

 

— do a complete wipe down with soapy water. This is also a good prep step if you’re planning to paint later on.

Windows

 

— Vinegar and water do the trick less expensively than store-bought window cleaning fluid.

When you have moved into your new home, start with a clean slate and organize your closets to maximize storage capacity. Be sure to gather together everything that you plan to store in a certain area before you decide on a shelving or container system. While you may be tired from all the other activities you’ve had to do lately, it’s well worth the effort to take a little extra time to get organized. This will help you enjoy your new home!

 

 

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Search HomePages.com to find providers in your area for many common things you’ll need as you settle into your new home, such as:

• Electricity

• Gas companies

• Telephone service

• Television cable

• Garbage collection

• Cellular phone service

• Basement Remodeling Services

• Yard Landscaping Needs

• Handyman Help

• Home Inspections

 

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We hope that you’ve found the information in this guide helpful—and that it has helped you survive the home purchase process and move into your next home! As you get better acquainted with your neighborhood, remember that HomePages.com is always available to help you find additional information about your neighborhood as well as resources for your new home.

 

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