This document provides an overview of the typical home buying process in 7 steps: 1) Define goals and research options, 2) Contact a real estate agent, 3) Get pre-approved for a loan, 4) View homes and select one, 5) Make an offer and negotiate with the seller, 6) Secure financing, and 7) Close the deal. It also includes a glossary of common real estate terms and considerations for first-time home buyers in the current market.
The home buying process – a brief, step-by-step overview;
A home buyer’s glossary ;
To buy or not to buy – considerations for first-time home buyers in this market;
The loan process – financing your home purchase ; Successfully negotiating the deal
The document provides an overview of the typical steps in the home buying process:
1) Define your goals and research options and financing; 2) Contact a real estate professional; 3) Get pre-approved for a loan; 4) View homes and make an offer; 5) Negotiate with the seller; 6) Secure financing; 7) Close the deal and take ownership. It emphasizes the importance of being well-informed and working with a trusted real estate professional throughout the process.
This document provides a guide to buying a home. It outlines the key steps buyers need to take, including preparing finances by saving for a down payment, improving credit scores, and getting pre-approved for a mortgage. It also discusses factors to consider when searching for a home, such as condition, size, price, and location. The guide covers making an offer, getting an inspection, closing on the purchase, and settling into the new home. The overall process from beginning the search to moving in is described.
This document provides information on finding a successful investment property. It recommends searching for homes within 10-20 minutes of major highways and near retail centers, schools, restaurants and amenities. The document stresses doing research on area schools, commute times and amenities before purchasing. It advises creating a wish list and working with a real estate agent to find the ideal home. The document also provides tips on making offers, including using contingencies and getting all terms in writing. Purchasing a home can be a good long-term investment, and with guidance from a real estate agent, the process can be smooth.
The How To Buy Fix and Sell Manual by PA DealsZack Weist
This document provides an overview of the process for buying, renovating, and selling real estate properties, also known as house flipping. It discusses key aspects of property selection, including focusing on affordable properties in areas with other investment activity and quick home sales. Due diligence steps are outlined, like researching comparable sale prices and active listings. Chapters will cover rehab, presentation, and marketing of flipped properties. The author aims to educate readers on effective processes for real estate investing through this "buy, fix, and sell" model.
The document discusses the foreclosure crisis and opportunities for buying foreclosed homes. It began with the bursting of the dot-com bubble and lowering of interest rates fueling a housing boom. Risky lending practices led to many homeowners defaulting on mortgages when housing prices dropped. This created a surge in foreclosures, presenting opportunities for investors and homeowners to purchase properties cheaply and potentially profit from future price increases. However, the document warns that buying foreclosures requires expertise and strategy to negotiate well with banks and avoid potential pitfalls.
This document outlines the process and services that a real estate agent, Mary Beth Welsh, will provide to help the client purchase a new home. The summary includes:
1) The agent will understand the client's goals, budget, and home needs to find suitable properties.
2) They will discuss market conditions and financing options to determine an affordable price range.
3) Once properties of interest are found, the agent will schedule viewings and negotiate offers on the client's behalf until an accepted offer is made.
4) The agent pledges to guide the client through the entire home buying process including inspections, appraisal, negotiations and closing to ensure a smooth transaction.
The document describes services offered by home buying specialists to help clients find the best home. It promises to help clients find the right home for their needs, negotiate the lowest price, secure the best financing, and meet home buying needs with minimal hassle at no cost. It outlines a three step system to pre-approve clients for a home loan, match them to listings using a buyer profile, and help make offers and negotiate terms using specialized knowledge.
The home buying process – a brief, step-by-step overview;
A home buyer’s glossary ;
To buy or not to buy – considerations for first-time home buyers in this market;
The loan process – financing your home purchase ; Successfully negotiating the deal
The document provides an overview of the typical steps in the home buying process:
1) Define your goals and research options and financing; 2) Contact a real estate professional; 3) Get pre-approved for a loan; 4) View homes and make an offer; 5) Negotiate with the seller; 6) Secure financing; 7) Close the deal and take ownership. It emphasizes the importance of being well-informed and working with a trusted real estate professional throughout the process.
This document provides a guide to buying a home. It outlines the key steps buyers need to take, including preparing finances by saving for a down payment, improving credit scores, and getting pre-approved for a mortgage. It also discusses factors to consider when searching for a home, such as condition, size, price, and location. The guide covers making an offer, getting an inspection, closing on the purchase, and settling into the new home. The overall process from beginning the search to moving in is described.
This document provides information on finding a successful investment property. It recommends searching for homes within 10-20 minutes of major highways and near retail centers, schools, restaurants and amenities. The document stresses doing research on area schools, commute times and amenities before purchasing. It advises creating a wish list and working with a real estate agent to find the ideal home. The document also provides tips on making offers, including using contingencies and getting all terms in writing. Purchasing a home can be a good long-term investment, and with guidance from a real estate agent, the process can be smooth.
The How To Buy Fix and Sell Manual by PA DealsZack Weist
This document provides an overview of the process for buying, renovating, and selling real estate properties, also known as house flipping. It discusses key aspects of property selection, including focusing on affordable properties in areas with other investment activity and quick home sales. Due diligence steps are outlined, like researching comparable sale prices and active listings. Chapters will cover rehab, presentation, and marketing of flipped properties. The author aims to educate readers on effective processes for real estate investing through this "buy, fix, and sell" model.
The document discusses the foreclosure crisis and opportunities for buying foreclosed homes. It began with the bursting of the dot-com bubble and lowering of interest rates fueling a housing boom. Risky lending practices led to many homeowners defaulting on mortgages when housing prices dropped. This created a surge in foreclosures, presenting opportunities for investors and homeowners to purchase properties cheaply and potentially profit from future price increases. However, the document warns that buying foreclosures requires expertise and strategy to negotiate well with banks and avoid potential pitfalls.
This document outlines the process and services that a real estate agent, Mary Beth Welsh, will provide to help the client purchase a new home. The summary includes:
1) The agent will understand the client's goals, budget, and home needs to find suitable properties.
2) They will discuss market conditions and financing options to determine an affordable price range.
3) Once properties of interest are found, the agent will schedule viewings and negotiate offers on the client's behalf until an accepted offer is made.
4) The agent pledges to guide the client through the entire home buying process including inspections, appraisal, negotiations and closing to ensure a smooth transaction.
The document describes services offered by home buying specialists to help clients find the best home. It promises to help clients find the right home for their needs, negotiate the lowest price, secure the best financing, and meet home buying needs with minimal hassle at no cost. It outlines a three step system to pre-approve clients for a home loan, match them to listings using a buyer profile, and help make offers and negotiate terms using specialized knowledge.
Buying a house for sale might be the greatest ambition of many individuals. So what are the things one should look before buying home? Give us a chance to discover.
This document describes a Home Equity Conversion Mortgage (HECM) for Purchase program that allows seniors aged 62+ to purchase a home using the equity in their current home, without the need for ongoing mortgage payments. It outlines the minimal qualifications, benefits of no credit score or debt-to-income requirements, and how seniors can purchase a new home and have funds remaining. Examples are provided of how this program enables seniors to purchase the home they want or need even if they do not qualify for traditional financing.
This document provides training on lead management for real estate sales. It discusses different types of leads like sell, buy, rent, and vacate leads. It explains how to generate leads through various online and offline marketing activities. It emphasizes on proper follow up with leads and managing leads through a CRM system. It also provides tips on handling different types of customer objections and situations that may arise during the lead conversion process.
If you want to buy or sell a home next year, December is the time to prepare. You should check your credit, purge unwanted items from your home, and create a prep list for repairs and updates. It's also important to save as much as possible for a down payment and closing costs. Reach out to a realtor and mortgage broker to discuss your local housing market and get advice on finances and property preparations. Attending open houses gives insight into comparable properties for sale.
Here are the key members of your home buying team and their roles:
Real Estate Agent - Represents you, the buyer, and helps you find properties that meet your needs and wants. Negotiates on your behalf.
Mortgage Loan Officer - Helps you get pre-approved for a mortgage loan and guides you through the financing process.
Home Inspector - Inspects the physical condition of the home before you purchase. Looks for any issues or needed repairs.
Title Company - Handles the closing process, including transferring ownership and securing the title. Ensures clear title.
Homeowners Insurance Agent - Provides a policy to protect your investment in your new home. Covers damage or loss to the property.
The document outlines the marketing and sales strategies that Fausto Valladares and Empire Realty Associates use to sell homes. They employ a 12 point plan including identifying goals, attracting buyers through effective marketing both inside and outside the home, reaching buyers through MLS and the internet, qualifying buyers, negotiating offers, assisting with financing, and keeping buyers after the sale to ensure a successful transaction. Their approach aims to maximize price and minimize problems for the seller.
The Investment News is the monthly newsletter for Real Estate Professionals from Mid-America Association of Real Estate Investors based in the Kansas City Metro and serving the Real Estate Industry since 2003.
Are you a buyer looking to purchase a short saleDamian Bruno
The document discusses key points for buyers to understand when purchasing a short sale property. It notes that short sales can take 60-90 days to get approved, unlike a normal sale. It also explains that short sales will likely be sold at a discount to market value, but not 40-50% below like some assume. Additionally, it emphasizes that short sales require experienced real estate agents due to their complex nature.
Joe Dent provides buyer agency services to help home buyers realize their dreams. As a buyer agent, he will arrange property showings, provide financing information, assist with paperwork and closing, represent the buyer's interests in negotiations, and structure offers to the buyer's advantage. Joe uses a system to help buyers through the homebuying process with loan preapproval, property searches tailored to their criteria, and making offers on homes using his negotiation expertise. He provides these services free of charge to buyers.
Kenneth P. "Kip" Nance is a REALTOR and broker in charge of Only Way Realty located in Tabor City, North Carolina. The document provides 8 reasons to work with a REALTOR over other real estate practitioners. It explains that REALTORS are members of the National Association of REALTORS and must follow its Code of Ethics. It then summarizes the top benefits of working with a REALTOR which include navigating the complex home buying/selling process, providing valuable local information and market expertise, helping find available properties, strong negotiating skills, marketing the property to other REALTORS' contacts, understanding real estate terminology, experience from many past transactions, and providing an objective perspective in
This document provides tips and strategies for real estate agents to improve their negotiation skills. It emphasizes finding common ground between parties by understanding each side's positions and interests, focusing on goals rather than positions, and problem solving to find mutually agreeable solutions. Agents are advised to ask questions to gain understanding, remain calm and flexible, and create an atmosphere of trust and cooperation. Conducting negotiations via email requires sensitivity to response times and establishing rapport while leveraging technology. Overall, the document stresses the importance of active listening, educating clients, and adapting to different communication styles and situations.
Book by: ALFRED LABEJA
Director/Property Expert.
Warib Capital Ltd
London.
Founder: http://www.propertyinvestmentgroups.com
HOW TO LOCATE ULTRA-BARGAINS
The document provides tips for real estate agents to help secure an offer from prospective home buyers. Some key tips include:
1. Educate buyers about the home buying process to reduce fears of the unknown. Prequalify buyers to confirm they can afford the home.
2. Highlight the homes that best fit the buyers' needs to create a strong sense of anticipation. Listen to any objections from buyers and address their concerns.
3. Get buyers excited about homes they like and have all decision makers present for viewings. Give buyers time to process what they've seen between appointments.
4. Ask buyers directly for an offer once they've seen suitable homes. Having the right motivation and pushing them
This document discusses how understanding customer motivations can help real estate agents guide clients through the decision-making process. It outlines Abraham Maslow's hierarchy of human needs and how different needs may motivate home buyers and sellers. Real estate agents are advised to observe clients, listen to understand their values and priorities, and present choices to determine what features are most important. The document also provides tips on defusing emotions during negotiations and using body language and empathy to be a better negotiator.
This document outlines 10 steps for choosing and purchasing a home. It provides guidance on each step, including finding a qualified buyer's representative. The first step is to find a buyer's representative who is committed to representing the buyer's best interests, such as one with an Accredited Buyer's Representative (ABR) designation. When choosing a representative, buyers should assess their experience, credentials, references, knowledge of the market, representation services, compensation, and ability to support the buyer through each stage of the home buying process. With the right representative, buyers can make informed decisions to successfully purchase a home.
The document provides an overview of a real estate agent's approach to assisting buyers in purchasing a home. It discusses establishing a working relationship based on open communication and clear goals. It outlines the agent's process for financing pre-approval, defining search criteria, touring homes, making offers, and overseeing the transaction through closing. The agent has over 30 years of experience and believes in treating clients the way they would like to be treated.
Wondering what you would need to do to get your home ready to sell? Few of us present our homes for daily life the same way we would present them for sale in the competitive marketplace. Wonder no longer. Take a look at our slide show, and give us a call for a buyer appeal assessments and more insights today!
Homebuying seminar for realtors to useheatherjs821
This homebuying seminar provides information to help families make the right decision for homeownership. It discusses the benefits of owning over renting, getting pre-approved for a loan, choosing a realtor, making an offer, and completing the closing process. Resources are also included to help with the homebuying process.
This document provides a guide for home buyers that outlines the typical steps in the home buying process. It begins with defining goals, researching options, and making a plan. Other steps include contacting a real estate agent, getting pre-approved for a loan, viewing homes, making an offer, securing financing, closing the deal, and understanding key terms. The guide aims to prepare buyers for successfully purchasing a home.
The document provides an overview of the typical home buying process in the United States. It outlines the main steps as: 1) defining goals and researching options, 2) contacting a real estate professional for guidance, 3) getting pre-approved for a mortgage loan, 4) viewing homes and making an offer, 5) negotiating with the seller, 6) securing financing, and 7) closing the deal. The document also includes a glossary of common real estate terms to help educate home buyers.
Kenneth P. “Kip” Nance is a REALTOR and broker in charge of Only Way Realty located in Tabor City, North Carolina. The document provides 9 reasons why working with a REALTOR is beneficial: 1) They have expertise to guide customers through the process. 2) They provide objective information and opinions on properties and their suitability. 3) They can find properties not actively advertised. 4) They have experience with negotiations. 5) They provide property marketing through their professional network. 6) They understand real estate terminology. 7) They have experience from many past transactions. 8) They can provide an emotional and objective perspective for this big purchase. 9) REALTORS commit to an ethical
This document provides a guide for buying a home. It outlines the necessary preparations, including saving for a down payment, improving your credit score, and getting pre-approved for a mortgage. It describes factors to consider when searching for a home, such as condition, size, price, and location. The guide also explains the process of making an offer, getting an inspection, closing on the purchase, and settling into the new home. The overall document serves as a comprehensive overview of the major steps involved in the home buying process.
Buying a house for sale might be the greatest ambition of many individuals. So what are the things one should look before buying home? Give us a chance to discover.
This document describes a Home Equity Conversion Mortgage (HECM) for Purchase program that allows seniors aged 62+ to purchase a home using the equity in their current home, without the need for ongoing mortgage payments. It outlines the minimal qualifications, benefits of no credit score or debt-to-income requirements, and how seniors can purchase a new home and have funds remaining. Examples are provided of how this program enables seniors to purchase the home they want or need even if they do not qualify for traditional financing.
This document provides training on lead management for real estate sales. It discusses different types of leads like sell, buy, rent, and vacate leads. It explains how to generate leads through various online and offline marketing activities. It emphasizes on proper follow up with leads and managing leads through a CRM system. It also provides tips on handling different types of customer objections and situations that may arise during the lead conversion process.
If you want to buy or sell a home next year, December is the time to prepare. You should check your credit, purge unwanted items from your home, and create a prep list for repairs and updates. It's also important to save as much as possible for a down payment and closing costs. Reach out to a realtor and mortgage broker to discuss your local housing market and get advice on finances and property preparations. Attending open houses gives insight into comparable properties for sale.
Here are the key members of your home buying team and their roles:
Real Estate Agent - Represents you, the buyer, and helps you find properties that meet your needs and wants. Negotiates on your behalf.
Mortgage Loan Officer - Helps you get pre-approved for a mortgage loan and guides you through the financing process.
Home Inspector - Inspects the physical condition of the home before you purchase. Looks for any issues or needed repairs.
Title Company - Handles the closing process, including transferring ownership and securing the title. Ensures clear title.
Homeowners Insurance Agent - Provides a policy to protect your investment in your new home. Covers damage or loss to the property.
The document outlines the marketing and sales strategies that Fausto Valladares and Empire Realty Associates use to sell homes. They employ a 12 point plan including identifying goals, attracting buyers through effective marketing both inside and outside the home, reaching buyers through MLS and the internet, qualifying buyers, negotiating offers, assisting with financing, and keeping buyers after the sale to ensure a successful transaction. Their approach aims to maximize price and minimize problems for the seller.
The Investment News is the monthly newsletter for Real Estate Professionals from Mid-America Association of Real Estate Investors based in the Kansas City Metro and serving the Real Estate Industry since 2003.
Are you a buyer looking to purchase a short saleDamian Bruno
The document discusses key points for buyers to understand when purchasing a short sale property. It notes that short sales can take 60-90 days to get approved, unlike a normal sale. It also explains that short sales will likely be sold at a discount to market value, but not 40-50% below like some assume. Additionally, it emphasizes that short sales require experienced real estate agents due to their complex nature.
Joe Dent provides buyer agency services to help home buyers realize their dreams. As a buyer agent, he will arrange property showings, provide financing information, assist with paperwork and closing, represent the buyer's interests in negotiations, and structure offers to the buyer's advantage. Joe uses a system to help buyers through the homebuying process with loan preapproval, property searches tailored to their criteria, and making offers on homes using his negotiation expertise. He provides these services free of charge to buyers.
Kenneth P. "Kip" Nance is a REALTOR and broker in charge of Only Way Realty located in Tabor City, North Carolina. The document provides 8 reasons to work with a REALTOR over other real estate practitioners. It explains that REALTORS are members of the National Association of REALTORS and must follow its Code of Ethics. It then summarizes the top benefits of working with a REALTOR which include navigating the complex home buying/selling process, providing valuable local information and market expertise, helping find available properties, strong negotiating skills, marketing the property to other REALTORS' contacts, understanding real estate terminology, experience from many past transactions, and providing an objective perspective in
This document provides tips and strategies for real estate agents to improve their negotiation skills. It emphasizes finding common ground between parties by understanding each side's positions and interests, focusing on goals rather than positions, and problem solving to find mutually agreeable solutions. Agents are advised to ask questions to gain understanding, remain calm and flexible, and create an atmosphere of trust and cooperation. Conducting negotiations via email requires sensitivity to response times and establishing rapport while leveraging technology. Overall, the document stresses the importance of active listening, educating clients, and adapting to different communication styles and situations.
Book by: ALFRED LABEJA
Director/Property Expert.
Warib Capital Ltd
London.
Founder: http://www.propertyinvestmentgroups.com
HOW TO LOCATE ULTRA-BARGAINS
The document provides tips for real estate agents to help secure an offer from prospective home buyers. Some key tips include:
1. Educate buyers about the home buying process to reduce fears of the unknown. Prequalify buyers to confirm they can afford the home.
2. Highlight the homes that best fit the buyers' needs to create a strong sense of anticipation. Listen to any objections from buyers and address their concerns.
3. Get buyers excited about homes they like and have all decision makers present for viewings. Give buyers time to process what they've seen between appointments.
4. Ask buyers directly for an offer once they've seen suitable homes. Having the right motivation and pushing them
This document discusses how understanding customer motivations can help real estate agents guide clients through the decision-making process. It outlines Abraham Maslow's hierarchy of human needs and how different needs may motivate home buyers and sellers. Real estate agents are advised to observe clients, listen to understand their values and priorities, and present choices to determine what features are most important. The document also provides tips on defusing emotions during negotiations and using body language and empathy to be a better negotiator.
This document outlines 10 steps for choosing and purchasing a home. It provides guidance on each step, including finding a qualified buyer's representative. The first step is to find a buyer's representative who is committed to representing the buyer's best interests, such as one with an Accredited Buyer's Representative (ABR) designation. When choosing a representative, buyers should assess their experience, credentials, references, knowledge of the market, representation services, compensation, and ability to support the buyer through each stage of the home buying process. With the right representative, buyers can make informed decisions to successfully purchase a home.
The document provides an overview of a real estate agent's approach to assisting buyers in purchasing a home. It discusses establishing a working relationship based on open communication and clear goals. It outlines the agent's process for financing pre-approval, defining search criteria, touring homes, making offers, and overseeing the transaction through closing. The agent has over 30 years of experience and believes in treating clients the way they would like to be treated.
Wondering what you would need to do to get your home ready to sell? Few of us present our homes for daily life the same way we would present them for sale in the competitive marketplace. Wonder no longer. Take a look at our slide show, and give us a call for a buyer appeal assessments and more insights today!
Homebuying seminar for realtors to useheatherjs821
This homebuying seminar provides information to help families make the right decision for homeownership. It discusses the benefits of owning over renting, getting pre-approved for a loan, choosing a realtor, making an offer, and completing the closing process. Resources are also included to help with the homebuying process.
This document provides a guide for home buyers that outlines the typical steps in the home buying process. It begins with defining goals, researching options, and making a plan. Other steps include contacting a real estate agent, getting pre-approved for a loan, viewing homes, making an offer, securing financing, closing the deal, and understanding key terms. The guide aims to prepare buyers for successfully purchasing a home.
The document provides an overview of the typical home buying process in the United States. It outlines the main steps as: 1) defining goals and researching options, 2) contacting a real estate professional for guidance, 3) getting pre-approved for a mortgage loan, 4) viewing homes and making an offer, 5) negotiating with the seller, 6) securing financing, and 7) closing the deal. The document also includes a glossary of common real estate terms to help educate home buyers.
Kenneth P. “Kip” Nance is a REALTOR and broker in charge of Only Way Realty located in Tabor City, North Carolina. The document provides 9 reasons why working with a REALTOR is beneficial: 1) They have expertise to guide customers through the process. 2) They provide objective information and opinions on properties and their suitability. 3) They can find properties not actively advertised. 4) They have experience with negotiations. 5) They provide property marketing through their professional network. 6) They understand real estate terminology. 7) They have experience from many past transactions. 8) They can provide an emotional and objective perspective for this big purchase. 9) REALTORS commit to an ethical
This document provides a guide for buying a home. It outlines the necessary preparations, including saving for a down payment, improving your credit score, and getting pre-approved for a mortgage. It describes factors to consider when searching for a home, such as condition, size, price, and location. The guide also explains the process of making an offer, getting an inspection, closing on the purchase, and settling into the new home. The overall document serves as a comprehensive overview of the major steps involved in the home buying process.
Thinking of buying a home in Richmond Virginia area? Whether it is your first home, or you have bought a home before this booklet will guide you through the process
Working with a REALTOR® provides several benefits when buying or selling a home. A REALTOR® is a real estate professional who is a member of the National Association of REALTORS® and adheres to its strict Code of Ethics. They have expertise to guide homeowners through the process, provide objective information and help find the best properties. REALTORS® also have negotiating experience and marketing power through their industry contacts.
The document provides an overview of the home buying process and discusses important considerations for obtaining a home mortgage loan. It includes tips on working with a lender and real estate agent, evaluating different loan options, negotiating terms, and becoming educated on the process. Key recommendations are to get pre-approved for a loan, look at multiple loan programs, demand good service, and don't be afraid to negotiate flexible terms. Being informed is important to getting the best mortgage.
The document provides tips for real estate investors on building an effective investment team and finding financing for real estate deals. It advises investors to work with reputable brokers, inspectors, contractors, and lenders to maximize investment success. For financing, it recommends considering private money lenders who can act swiftly and negotiate flexible terms for deals that don't meet banks' criteria. Overall, the document emphasizes the importance of preparing properly by analyzing deals carefully, inspecting properties thoroughly, and communicating positively with lenders.
This document provides information to help buyers through the process of purchasing a home, including:
- Working with a real estate agent to find the right home and make an offer
- Understanding financing and pre-qualifying for a loan amount
- Going through the escrow process where terms are carried out by a neutral third party
- Signing documents and fulfilling conditions to complete the transaction by the closing date
This document provides tips on how to prepare a home for sale using feng shui principles to appeal to buyers. It recommends paying special attention to the front door area to create a welcoming first impression. It also suggests keeping chi energy from being drained by keeping toilet seats down and bathroom doors closed. Additionally, it advises placing the master bed in a position of honor and using soothing paint colors in the bedroom. The dining room should have a clear, attractive table to promote family togetherness. Finally, clean windows allow the best view of the home.
This document provides information and advice for first-time home buyers regarding getting a home loan. It discusses the benefits of using a mortgage broker who can help find the right loan, negotiate terms, and make the application process easier. The document also covers important factors to consider like saving for a deposit, estimated borrowing potential, additional costs, different loan types, and options for assistance like family loans or first home owner grants. Overall, it aims to give first home buyers a better understanding of the home loan process and how to make a well-informed decision.
This guide provides steps for first-time home buyers including determining a budget, getting pre-approved for a mortgage, deciding between fixed and adjustable rate mortgages, and choosing a REALTOR. It recommends getting pre-approved before house hunting to be an attractive buyer. REALTORS can help find the perfect home and guide buyers through the entire process including writing offers, inspections, and closing.
The document provides steps for buying a home with the help of a real estate agent. It begins with an introduction to the agent, Peggy Warren, and her qualifications. It then outlines the 7 steps to buying a home: 1) consultation, 2) loan pre-approval, 3) home search, 4) viewing homes, 5) pricing strategy, 6) making an offer, and 7) closing. The document provides guidance and tips for home buyers on each step of the process.
A REALTOR can provide valuable services and expertise when buying or selling a home. They are committed to treating all parties honestly and follow a strict code of ethics. They have specialized knowledge and industry resources to help clients determine their financial position and buying power, find the right property to meet their needs, negotiate the best deal, and smoothly guide the client through the entire transaction process. Using a REALTOR can help maximize the chances of a successful real estate transaction.
Finding the right home in an expensive city can be a real challenge.
Home buying may look easy, but it is anything but simple. Having worked in the industry for nearly two decades I see home buyers making the same costly mistakes over and over again.
When it comes to buying your dream home, large sums of money are involved, complex legal processes are required and lots of conflicting advice is available. It can be really hard to cut through all the noise and confidently know that you are buying your dream in your preferred location which will fit your lifestyle and budget.
This booklet is all about helping you to avoid the common mistakes others have made. By understanding the potential pitfalls, you will gain a better understanding of what makes a successful and prosperous home buyer and how you can make better buying decisions to secure your dream home.
Go forth and prosper !
Miriam Sandkuhler
PROPERTY MAVENS
Buyer Advocate, Accredited Property Investment Advisor and Author of the best selling Property Prosperity
The document provides information about the 7 steps to successfully buying a home, as outlined by Team Page Homes Realty One Group. It begins with an introduction and overview of the 7 steps. It then details each step, providing information on buying consultations, loan pre-approvals, home searches, viewing homes, developing a pricing strategy, making offers, and managing the closing process. Key aspects of each step, such as determining needs and budget, loan application requirements, and offer contingencies are discussed. The document aims to guide home buyers through the entire home buying process.
Zack childress real estate investing its foundationZack Childress
Zack childress real estate investing before you even consider entering the real estate industry, you should know of its foundation. Real estate investing has no room for investors with very little knowledge of the different processes involved in the business.
This document provides an overview of the home buying process. It discusses determining readiness and affordability, shopping for a home and loan, the roles of real estate agents and attorneys, important terms in sales agreements, and required inspections. Key steps include assessing finances and monthly budget, getting pre-approved for a loan amount, finding an agent to represent your interests, reviewing the sales agreement terms carefully, and arranging inspections for issues like pests or lead-based paint in older homes. Taking time on these initial stages helps ensure finding the right home and loan within one's means.
1. H O M E B U Y E R ’ S G U I D E
R E A L T O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S
2. H O M E B U Y E R ’ S G U I D E
R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S
The home buying process – a brief, step-by-step overview.... 2
A home buyer’s glossary.................................................................... 8
To buy or not to buy – considerations for first-time home
buyers in this market........................................................................... 13
The loan process – financing your home purchase.................... 17
Successfully negotiating the deal.................................................... 22
Expect great service from your REALTOR®
.................................. 26
Home search worksheet................................................................... 28
Contents
3. H O M E B U Y E R ’ S G U I D E
R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S
If you’re like most people, buying a home represents your single biggest
investment – and debt. As such, the home buying process can be one
of the most exciting, but sometimes also stressful, experiences you ever
go through. This may be true whether you’ve bought many homes or
you’re looking to buy your first, whether you’re in the market for
a new primary residence, an investment property or that perfect
vacation getaway.
Moreover, never has the real estate market offered more great
opportunities, or been fraught with more risks, than now. There are
many factors to consider and many decisions to make. That’s why,
when buying, it’s crucial for you to have all the available resources
necessary to make a well-informed decision, together with the time
required to make complete use of them. That’s also why you should
enlist the help of a trusted REALTOR®
who’ll be able to provide you
with expert consultation at each step of the buying process.
Generally, finding and purchasing a home includes the following steps,
some of which are examined in more detail throughout this booklet:
1. Define Your Goals, Research Your Options,
Make Your Plans
Given that buying a home is such a big step, it’s all the more important
for you to educate and prepare yourself as much as possible in
advance. This means clearly determining why you’re buying and what
kind of home you’re looking for. And because buying and financing
a home are so closely related, it also means examining your current
financial situation and projecting how much you can afford.
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The home buying process – a brief,
step-by-step overview
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Once you’ve answered these questions, even tentatively, you’ll be in
a better position to research your housing and mortgaging options,
as well as create an action plan and timelines for moving forward. You
may want to do this yourself, but you may also benefit by consulting an
experienced REALTOR®
right from the start.
2. Contact A REALTOR®
Buying real estate is a complex matter at the best of times, given
that there are so many factors to consider and no two homes or
transactions are alike. However, with all the unique opportunities and
potential pitfalls of the current market, it’s even more important for you
to contact a REALTOR®
once you’ve definitely decided to buy.
In choosing a REALTOR®
to guide you through the property search,
financing, negotiation and transaction processes, you should consider
their local market knowledge, experience and track record.
3. Get Pre-Approved For A Loan
Generally, it is recommended that you get pre-qualified for a loan before
you start viewing homes with the serious intention of buying. The pre-
approval process involves meeting with a lender and authorizing them
to examine your current financial situation and credit history. On the
basis of this examination the lender will provide you with a document
that details how much you can borrow to buy a home.
You may want to consider looking online to see what different lenders
offer, such as on MortgageMatch.com, or contacting your local bank or
credit union.
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The benefits of pre-qualification include:
• You’ll have information about what you can afford and be
able to plan accordingly
• As a qualified, motivated buyer you’ll be taken more seriously
when you make an offer on a home
• Lenders can tell you whether you qualify for any special
programs that will enable you to afford a better home
(particularly if you’re a first-time buyer)
Real estate financing is available from many sources, and an
experienced REALTOR®
will be able to suggest lenders with a history
of offering excellent mortgage products and services. For more
information about the benefits of pre-approval and the loan process in
general, see The Loan Process - Financing Your Home Purchase, on
page 17.
4. View Homes And Select THE ONE
Simply put, key to the home search process is knowing what you’re
looking for. Among other things, that means distinguishing between
“must-haves” and “like-to-haves”. To help you to target your search
and define your home preference priorities, this guide includes a Home
Search Worksheet on page 28.
That said, here are a few recent facts about the search process that
might put your experience in perspective:
• Almost 90% of buyers use the Internet to search for homes1
• The typical buyer searches for 12 weeks and views 12 homes1
• 81% of buyers view real estate agents as very useful in the
search process1
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1
National Association of REALTORS®
Profile of Home Buyers and Sellers, 2010
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There are many benefits to starting the search process at a real estate
website like REALTOR.com®
, the world’s most extensive source for
property information. You can view many homes and their details, take
video tours and access neighborhood info.
However, it’s also important to view homes in person. While their
property details may seem similar online, homes can actually be very
different in terms of layout, design, workmanship and other aspects. In
addition, you should ideally view homes with the help of an experienced
and eagle-eyed REALTOR®
who’ll notice things you might miss, provide
expert analysis, and act as an impartial sounding board.
5. Make An Offer And Negotiate With The Seller
Now that you’ve found the home you’d like to buy, it’s time to make
an offer. Your local real estate association, working with legal counsel,
has developed the contracts that are used for transactions in your
area. These contracts enable you to specify a sale price and also
include many clauses for specifying various terms of purchase, such
as the closing and possession dates, your deposit amount, and
other conditions. You should carefully review these clauses with your
REALTOR®
to ensure that they express your desired offer. In addition to
drawing up the contract, your REALTOR®
will be happy to address all
your questions about the offer process.*
Once you’ve written the offer, your REALTOR®
will present it to the
seller and/or the seller’s representative. At that point, the process –
given that a home’s eventual sale price is subject to supply and demand
– will depend on the kind of market you’re in. Generally though, the
seller can accept your offer, reject it, or counter it to initiate the
negotiation process.
* Customs for drawing up contracts vary by region.
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Successive counter-offers, with deadlines for responding and meeting
conditions, will be exchanged between you and the seller until a
mutually-satisfactory pending agreement is reached or the
negotiations breakdown.
Negotiations can involve many factors relating to different market
conditions, homes and sellers, some of which are examined in
Negotiating The Deal, on page 22.
6. Secure Your Financing
Once you have a pending agreement, it’s time to go back to your
chosen lender to finalize your mortgage details so you can close the
deal. This means finalizing your down payment, interest rate, regular
payment schedule and any other financial conditions associated with
the closing.
As noted in the section on loan pre-approval, if you’ve already been
qualified with a lender for a certain loan and home purchase, this phase
of buying your new home should be a relatively straightforward
matter that centers around finalizing the loan details and signing
the mortgage papers.
As the old saying goes, ‘let the buyer beware’. Particularly in these
times, when so many buyers are suffering the consequences of having
not fully understood their financing decisions, it’s crucial for you to work
with people you trust. In this regard, a good REALTOR®
can be a true
friend for life.
For more information on the loan process, see The Loan Process -
Financing Your Home Purchase, on page 17.
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7. Close The Deal
If you’ve efficiently taken care of everything connected with purchasing
your new home, the experience of taking ownership will be a positive
joy with no surprises. Key steps to the closing, also referred to as the
“escrow” or “settlement”, include:
• Getting a Title Search – an historical review of all legal
documents relating to ownership of the property – to ensure
that there are no claims against the title of the property. It is
also necessary to purchase Title Insurance in case the records
contain errors or there are mistakes in the review process.
• The Final Walkthrough – you’ll be given the chance to look
at the home to make sure it’s in the same condition as when
you signed the sale agreement.
• The Settlement – typically, on the Closing Date you’ll go to a
lawyer’s office to verify and sign all the paperwork required to
complete the transaction. The settlement will include paying
your closing costs, legal fees, property adjustments and
transfer taxes. At that point, you’ll receive the property title
and copies of all documentation pertaining to the purchase.
Oh, and one more thing – you’ll get the keys. In most cases,
Possession Date will fall within a couple days, at which point you’ll be
able to move into your new home.
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When buying a home, it’s important to understand some of the key
concepts and terms. Throughout the purchase process, your REALTOR®
will be available to explain any unfamiliar terms you encounter. That said,
here is a short list of terms you’ll want to know:
Abstract Of Title – A complete historical summary of the public
records relating to the legal ownership of a particular property from the
time of the first transfer to the present.
Adjustable Rate Mortgage (ARM) – Also known as a variable-rate
loan, an ARM is one in which the interest rate changes over time,
relative to an index like the Treasure index.
Agreement of Sale – Also known as contract of purchase, purchase
agreement, or sales agreement according to location or jurisdiction.
A contract in which a seller and buyer agree to transact under certain
terms spelled out in writing and signed by both parties.
Amortization – The process of reducing the principal debt through a
schedule of fixed payments at regular intervals of time, with an interest
rate specified in a loan document.
Appraisal – A professional appraiser’s estimate of the market value of
a property based on local market data and the recent sale prices of
similar properties.
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A Home Buyer’s Glossary
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Assessed Value – The value placed on a home by municipal assessors
for the purposes of determining property taxes.
Closing – The final steps in the transfer of property ownership. On the
Closing Date, as specified by the sales agreement, the buyer inspects
and signs all the documents relating to the transaction and the final
disbursements are paid. Also referred to as the Settlement.
Closing Costs – The costs to complete a real estate transaction
in addition to the price of the home, may include: points, taxes, title
insurance, appraisal fees and legal fees.
Contingency – A clause in the purchase contract that describes
certain conditions that must be met and agreed upon by both buyer
and seller before the contract is binding.
Counter-offer – An offer, made in response to a previous offer, that
rejects all or part of it while enabling negotiations to continue towards
a mutually-acceptable sales contract.
Conventional Mortgage – One that is not insured or guaranteed by
the federal government.
Debt-to-Income Ratio – A ratio that measures total debt burden.
It is calculated by dividing gross monthly debt repayments, including
mortgages, by gross monthly income.
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Down Payment – The money paid by the buyer to the lender at the
time of the closing. The amount is the difference between the sales
price and the mortgage loan. Requirements vary by loan type. Smaller
down payments, less than 20%, usually requires mortgage insurance.
Earnest Money – A deposit given by the buyer to bind a purchase
offer and which is held in escrow. If the property sale is closed, the
deposit is applied to the purchase price. If the buyer does not fulfill all
contract obligations, the deposit may be forfeited.
Equity – The value of the property, less the loan balance and any
outstanding liens or other debts against the property.
Easements – Legal right of access to use of a property by individuals
or groups for specific purposes. Easements may affect property values
and are sometimes part of the deed.
Escrow – Funds held by a neutral third party (the escrow agent) until
certain conditions of a contract are met and the funds can be paid out.
Escrow accounts are also used by loan servicers to pay property taxes
and homeowner’s insurance.
Fixed-Rate Mortgage – A type of mortgage loan in which the interest
rate does not change during the entire term of the loan.
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Home Inspection – Professional inspection of a home, paid for by the
buyer, to evaluate the quality and safety of its plumbing, heating, wiring,
appliances, roof, foundation, etc.
Homeowner’s Insurance – A policy that protects you and the lender
from fire or flood, a liability such as visitor injury, or damage to your
personal property.
Lien – A claim or charge on property for payment of a debt. With a
mortgage, the lender has the right to take the title to your property if
you don’t make the mortgage payments.
Market Value – The amount a willing buyer would pay a willing seller
for a home. An appraised value is an estimate of the current fair
market value.
Mortgage Insurance – Purchased by the buyer to protect the lender
in the event of default (typically for loans with less than 20% down).
Available through a government agency like the Federal Housing
Administration (FHA) or through private mortgage insurers (PMI).
Possession Date – The date, as specified by the sales agreement,
that the buyer can move into the property. Generally, it occurs within
a couple days of the Closing Date.
Pre-Approval Letter – A letter from a mortgage lender indicating that
a buyer qualifies for a mortgage of a specific amount. It also shows a
home seller that you’re a serious buyer.
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Principal – The amount of money borrowed from a lender to buy a
home, or the amount of the loan that has not yet been repaid. Does
not include the interest paid to borrow.
Purchase Offer – A detailed, written document which makes an offer
to purchase a property, and which may be amended several times in
the process of negotiations. When signed by all parties involved in the
sale, the purchase offer becomes a legally-binding sales agreement.*
Title – The right to, and the ownership of, property. A Title or Deed is
sometimes used as proof of ownership of land. Clear title refers to a
title that has no legal defects.
Title Insurance – Insurance policy that guarantees the accuracy of
the title search and protects lenders and homeowners against legal
problems with the title.
Truth-In-Lending Act (TILA) – Federal law that requires disclosure
of a truth-in-lending statement for consumer loans. The statement
includes a summary of the total cost of credit.
Title Search – A historical review of all legal documents relating to
ownership of a property to determine if there have been any flaws in
prior transfers of ownership or if there are any claims or encumbrances
on the title to the property.
* The purchase offer and contract procedures vary by region.
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To buy or not to buy – considerations for
first-time home buyers in this market
Buying your first home is a major step. There’s a lot you need to know
to make the right decisions – and also to avoid making the wrong ones.
And that’s particularly true in this current buyers’ market, when there
are so many homes available and sellers have such diverse motivations.
The good news is that if you know what you’re doing, or if you’re
working with a highly-experienced REALTOR®
who does, this market
offers fantastic opportunities to get a great home at a great price.
Owning Versus Renting
Without question, owning a home comes with responsibilities and
risks that you don’t have to worry about when you rent, such as a
mortgage, taxes, homeowner’s insurance, maintenance and repairs,
to name a few.
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However, financial advisors – not to mention homeowners themselves –
say there are far more advantages to owning:
• Historically, it has trended that over time, you’ll lose money by
renting instead of owning your own home. Why not build up
equity in a home instead of paying your landlord’s mortgage?
• Although there are periodic market drops, historically owning
a home has been a prime financial investment
• You can take advantage of many ongoing tax benefits, like
deducting the interest on your mortgage and property taxes
from your income tax
• Owning a home isn’t just a good investment in financial terms,
it’s also an investment in a higher quality of life – particularly if
you have a family or if you’re planning one
• There is a special kind of pride in the ownership and upkeep
of a home that you won’t get with renting
At the end of the day, it just feels good to own your own home. You can
decorate it any way you like, renovate or build additions, personalize
your landscaping
Do You Qualify To Own?
There’s only one way to find out: go to your bank and/or another
lending institution and allow them to perform a credit check and
analyze your financial situation.
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You might be surprised to know that there are many renters who
financially qualify to own their own homes, but don’t realize it. Are you
in this category? It would be a shame if you wanted to own your own
home, but didn’t know you could – particularly in this perhaps once-in-
a-lifetime buyers’ market.
Also, keep in mind you may be eligible for loans insured by the Veterans
Administration (VA) or the Federal Housing Administration (FHA).
Is It A Good Time To Buy?
Generally speaking, if you’re financially qualified, your timing couldn’t be
better. In fact, few markets have ever offered the kinds of opportunities
that currently exist for first-time home buyers, because:
• Home prices are down generally
• Mortgage rates are historically low. You might be able to
lock-in at a very low rate on a 30-year mortgage!
• There is a large listing inventory generally – i.e. plenty of
homes to choose from
• There are many foreclosed homes and distress sale listings
available at greatly reduced prices
• There are many builder liquidations – i.e. new homes –
available at greatly reduced prices
(The information above is based on market conditions at time of this printing.)
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So the bottom line is that if you are currently renting but really want
to own a home, this is a fantastic time to buy. And again, you may
qualify to buy and not know it. So talk to a knowledgeable, experienced
REALTOR®
about your options. Your REALTOR®
will not only be able
to guide you towards getting all the financial support you qualify for,
but you’ll also get the scoop on the many and various great real estate
opportunities currently available.
Not only that, but in case you didn’t know, all the work that a REALTOR®
does to help you find, finance, and purchase a home won’t cost you a
penny – it’s all paid for by the seller!
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Unless you’re one of the rare few able to pay cash for your home,
central to buying is finding the right lender and mortgage product.
There are many different kinds of lending institutions, offering a wide
range of loans and special programs. In fact, you should diligently
research your options and shop around for a mortgage with as much
care as you take when looking for a home.
Here are the main steps to securing the mortgage that best suits
your needs.
Educate Yourself About Your Options
Sad to say, but we’re currently in a time when many people are
suffering the consequences of having made poor – and perhaps
ill-advised – mortgage decisions. That’s why it’s crucial for you to learn
as much as you can about your mortgage options.
There are myriad loan types and programs available through thousands
of banks, finance companies, credit unions, and other assorted lenders.
Not surprisingly, there are just as many sources of information about
mortgages. Websites like REALTOR.com®
, books, news articles,
seminars, mortgage brokers, lenders, and knowledgeable REALTORS®
can all help you make your way through the labyrinth of financing
possibilities, so make use of them. And be sure to get a few opinions.
In short, do your homework before you put your name on
the line, because what you don’t know could hurt you.
The loan process – financing your
home purchase
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Sincerely Examine Your Financial Situation
Together with educating yourself about your loan options, you should
be asking yourself how much mortgage and down payment you can
really afford. Make yourself accountable. What might you be giving up
– not just every month, and also perhaps 20 years down the road – by
extending yourself further? Maybe taking on a larger mortgage will pay
off greatly as an investment, maybe it won’t. Be sure to weigh the risks
and opportunity costs.
Along these lines, REALTOR.com®
provides you with a variety of loan
calculators that will help you determine what your regular payments
will be based on your projected down payment, the loan principal, the
interest rate, the mortgage term, and so on.
One other point to note is that some lenders will qualify you for the
maximum they’re willing to lend which, however, may be more than you
can truly afford given all your other responsibilities. Additionally, be sure
to factor all related taxes, insurance, improvements, homeowner fees
and all other potential costs into the equation. The bottom line is that
you should make a list of your monthly expenses, as well as project
your financial commitments during the life of the mortgage. This will
provide a realistic figure of what you can afford.
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In shopping for a loan you should consider two main sources: direct
lenders and mortgage brokers. Direct lenders have the money and
make the decisions, but have a limited number of in-house products to
offer. Brokers are intermediaries who charge a fee, but who can provide
you with loan options from many sources and can often save you
money overall. In this case, you might consult your REALTOR®
as they
may have some beneficial connections.
Your Basic Mortgage Options
Generally, there are two ways you can go: a fixed-rate mortgage with
an interest rate that remains the same for the life of the loan, or an
adjustable-rate mortgage (ARM) with a rate that adjusts up or down,
depending upon economic trends.
The advantages of a fixed-rate mortgage – particularly if you lock in at
a low rate – are that they protect you against the risk of rising interest
rates, and their stability can also make it easier for you to plan and
budget your short and long-term expenses. Their down side is that they
generally have higher rates than ARMs at any given time, and by locking
in you run the risk of being trapped at a relatively high rate if interest
rates fall.
Another main consideration with a fixed-rate mortgage is the term.
Shorter term mortgages, like a 15-year, have lower rates than a 30-year.
The shorter term and lower rate mean that you’ll pay less interest
over the life of the loan, although your monthly payments will generally
be higher.
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On the other hand, an adjustable-rate mortgage’s (ARM) rate is
commonly based on the U.S. Treasury index for a one-year Treasury bill,
although it may also be geared to other indexes. Generally, lenders add
2-4% to the index rate to get their ARM rate. Initially, the rate is lower
than the fixed rate by a quarter point to two points or more. This rate
will periodically adjust within set limits or “caps” that are specified by the
terms of the loan.
Finally, it must be reiterated that the loan you ultimately qualify for
will depend on your credit status. The best rates and terms are only
available to those with solid credit so, if possible, pay off your credit
cards and make all other bill payments in full and on time.
Apply For A Mortgage
Once you’ve reached a pending agreement with a seller to buy a home
you’ll have all the details you need to formally apply for a mortgage.
When you meet with your chosen lender to complete the application
you’ll need to provide information – if you didn’t during the pre-approval
process – about your household income, job tenure and stability, assets
and existing debt, and regular expenses. This may take the form of
pay stubs, bank and investment statements, tax returns and other
documentation. The lender will also check your credit status.
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During the application process you’ll discuss your different loan options
and programs you qualify for, as well as finalize the size of your down
payment. If you place less than 20% down, the lender may require
the mortgage to be guaranteed by a third party such as the Veterans
Administration (VA), the Federal Housing Administration (FHA) or a
private mortgage insurer (PMI).
Generally, because there are so many considerations and so much
at stake, make sure you bring all your questions to the table, and this
includes asking the lender to explain all terms of the mortgage. You
may find that having a trusted and knowledgeable REALTOR®
by your
side to explain every aspect of the mortgage contract will increase your
peace of mind.
Lastly, if you qualify for the loan you’re seeking, the lender will often
have the home you’re buying professionally appraised to ensure that it
is worth the purchase price.
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Successfully negotiating the deal
Negotiating the transaction is usually the most complex aspect of
buying a home. At the same time, it’s the one that can involve the
most creativity. That’s why it’s important to have an experienced and
savvy REALTOR®
who has successfully worked through many different
transaction scenarios.
That said, what follows are a few strategies for negotiating a good deal
in a buyer’s market like this one, all of which involve: presenting yourself
as a serious buyer while, at the same time, keeping your emotions in
check; trying to understand and respect the priorities of the seller;
being creative and, where necessary, willing to compromise to get the
deal done.
Strike A Balance – Motivated But Not Too Eager
For you, as a buyer in a buyers’ market, it all starts before you even
make an offer, the first time you see that home you think might be THE
ONE. It’s important that you not give yourself away to the listing agent
by getting too excited about your “find”. If anything, ask a few
questions, maybe take a few notes, and let your REALTOR®
do most
of the talking.
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Ideally you’re trying to strike a balance by appearing to be a qualified,
motivated buyer while, not appearing to be too eager. You’ll
demonstrate that you’re a serious buyer – the kind sellers look for –
at the time you make the offer, particularly if you:
• Have already sold your present home (if you have one); or in
any case, make it clear that you’re not dependent upon selling
in order to buy
• Make an all-cash offer or show that you’ve been pre-approved
• Provide an attractive “earnest” deposit with the offer
• Make an offer that still gives you room to negotiate your price
Not only will this approach show that you’re qualified and motivated, it
will place you in a stronger negotiating position overall. The sellers
won’t want to lose you and so will be more inclined to reduce their price
a little and/or make some concessions with respect to terms
Understand And Respect The Seller’s Priorities
If, through the negotiations, you can find out more about the seller’s
situation and priorities you’ll not only improve your position, but you’ll
also be able to resolve any obstacles more creatively and sensitively.
For instance, if a seller is adamant about the sale price they might
be more flexible about taking care of a few repairs or part of the
transaction costs. Or if they need a certain closing date, you might be
able to get them to concede some other terms. There are no “one size
fits all” approaches to negotiating, particularly in the current market
when there are so many distress sales. In general, the more you know
about the seller’s priorities, the more you’ll be able to work with them in
order to achieve your own priorities.
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R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S
Look Beyond The Price
While a home’s sale price is generally the focus of negotiations, often
sellers will have needs such that the terms of purchase can significantly
influence the final deal. Additionally, it is in relation to the terms – which
can represent thousands of dollars in value – where you can get most
creative when it comes to resolving the obstacles to transacting. Here
are some elements in the purchase agreement that you might put on
the table for discussion:
• An all-cash offer by you
• The amount of earnest money deposit you provide
• Closing and Possession Dates
• Inclusion of furniture, fixtures, etc., not considered part
of the property
• Payment for repairs required by your lender
• Payment of taxes, utilities and rents
• Payment of title search and insurance
• Payment of survey, transfer taxes and recording fees
• Payment of general and termite inspections
• Payment of attorney’s fees
Along these lines, the key is to get all terms of purchase in
writing within the agreement. These terms should then be
carefully reviewed and clearly understood by both you and
the seller so that you’re on the same page and the negotiations
move forward.
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26. H O M E B U Y E R ’ S G U I D E
R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S
Is It Really THE ONE? If So, Make It So
Even in a buyers’ market like this one, if you’re really interested in
buying the home you’re negotiating over – if it really is THE ONE –
you should be willing to make some compromises to make the deal
happen. If that’s not the case, then you should listen to your heart and
consider looking for another home – it just might be out there waiting
for you . . .
That said, here are a few basic principles of successful negotiation to
consider if you’re committed to completing your purchase:
• Remember your priorities and respect the seller’s – don’t let small
things get in the way of your better judgment
• If necessary, defer until later – if small issues do get in the way in
the midst of big ones, focus on and consolidate your agreement on
the big issues and come back to the small ones later
• At the end of the day, if there are disagreements about relative
small expenses, split the difference and smile
The reality is that most negotiations proceed without much problem.
In the event that there are difficulties but you’re committed to
buying the home, remember: where there’s a will there’s a way.
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27. H O M E B U Y E R ’ S G U I D E
R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S 26
Many REALTORS®
are buyer specialists who focus on helping people
successfully find and buy the homes they’ve always wanted. One
benefit of using their services is that they hear about listings right when
they come on the market – in fact, sometimes even before they’re on
the market. And that’s just the first step. When they work for you
they will:
• Educate you about Buyer Agency, outlining their professional
responsibilities to you, including complete Disclosure, Loyalty,
Confidentiality, Obedience and Accountability
• Help you explore your financing options and, if required, refer you
to some excellent mortgage professionals so you can make the
best possible mortgage decision
• Save you time by regularly searching the market for affordable
homes that meets your criteria
• Email your specific home requirements to top producing agents
in the area so they know they have a qualified purchaser
• View homes with you and provide comparative analysis. They
can also refer you to expert home inspectors that will provide
more in-depth analysis and advice
Expect great service from your REALTOR®
29. H O M E B U Y E R ’ S G U I D E
R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S 28
Home search worksheet
Main Requirements
Price range: _______________________ Lot size: ________________________
Area:_____________________________ Square footage: _________________
Detached/Attached:________________ Number of bedrooms: ____________
House style(s): _ ___________________ Number of bathrooms: ____________
Age of property: ___________________ Garage: ________________________
Specific Features
(e.g., waterfront, view, large lot, pool, fireplace, basement, garage size, built-in
vacuum, distance to school, additional room preferences, etc.):
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Additional Comments
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
30. H O M E B U Y E R ’ S G U I D E
R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S 29
Home search worksheet
Main Requirements
Price range: _______________________ Lot size: ________________________
Area:_____________________________ Square footage: _________________
Detached/Attached:________________ Number of bedrooms: ____________
House style(s): _ ___________________ Number of bathrooms: ____________
Age of property: ___________________ Garage: ________________________
Specific Features
(e.g., waterfront, view, large lot, pool, fireplace, basement, garage size, built-in
vacuum, distance to school, additional room preferences, etc.):
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Additional Comments
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
31. H O M E B U Y E R ’ S G U I D E
R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S 30
Home search worksheet
Main Requirements
Price range: _______________________ Lot size: ________________________
Area:_____________________________ Square footage: _________________
Detached/Attached:________________ Number of bedrooms: ____________
House style(s): _ ___________________ Number of bathrooms: ____________
Age of property: ___________________ Garage: ________________________
Specific Features
(e.g., waterfront, view, large lot, pool, fireplace, basement, garage size, built-in
vacuum, distance to school, additional room preferences, etc.):
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Additional Comments
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
32. H O M E B U Y E R ’ S G U I D E
R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S
Home search worksheet
31
Main Requirements
Price range: _______________________ Lot size: ________________________
Area:_____________________________ Square footage: _________________
Detached/Attached:________________ Number of bedrooms: ____________
House style(s): _ ___________________ Number of bathrooms: ____________
Age of property: ___________________ Garage: ________________________
Specific Features
(e.g., waterfront, view, large lot, pool, fireplace, basement, garage size, built-in
vacuum, distance to school, additional room preferences, etc.):
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Additional Comments
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
33. H O M E B U Y E R ’ S G U I D E
R E A LT O R . C O M ®
| T O P P R O D U C E R ®
| S T E P - B Y - S T E P S E R I E S 32
Home search worksheet
Main Requirements
Price range: _______________________ Lot size: ________________________
Area:_____________________________ Square footage: _________________
Detached/Attached:________________ Number of bedrooms: ____________
House style(s): _ ___________________ Number of bathrooms: ____________
Age of property: ___________________ Garage: ________________________
Specific Features
(e.g., waterfront, view, large lot, pool, fireplace, basement, garage size, built-in
vacuum, distance to school, additional room preferences, etc.):
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Additional Comments
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________