Posts Tagged ‘Buyer Agent’

Buying a house is a difficult process — there are large sums of money involved, the transaction costs and hassle of moving mean that you can’t just buy another house if you don’t like the one you end up with. The best you can do is to educate yourself in all aspects of the house hunt, keep a clear head, and buy a house that best fits your criteria.

There are plenty of articles full of useful tips for first-time homebuyers. I am not going to repeat them. Instead, I will list the lessons I have learned over the past 30 years of working exclusively with buyers that are not often covered.

Think long-term and think re-sale: Are you planning to have kids? Will you be taking care of elderly relatives? You might be planning to live in your first home for only a few years or plan on using it as an income producing property. In that case, who is your target audience when it comes time to sell or rent the house? If you buy a house in a very bad school district or a house with all the bedrooms upstairs when you are ready to sell the house, you will be narrowing the field of potential buyers.

Make a list of items to check when looking at properties: Home-buying is an emotional process. Ideally, you should set aside all your emotions when evaluating a house. Practically, that is impossible. Instead, make a checklist of your must-haves, nice-to-haves or absolutely nots. Then print copies of this checklist or keep it on your tablet. Every time you visit a house, take the checklist along with you; take photographs so you can cross each item off your list. If you fall in love with the house aesthetics but find your checklist shows that the house has none of your must-haves, it will at least make you pause and think.

All the old advice about buying your first home is true. Some examples — have an emergency fund, save for a down payment of 20 percent and closing costs, get your credit into a better shape, and don’t buy more than you can afford.  When budgeting for the house, don’t stop with principal, interest, taxes and insurance; add in utilities, cost of commuting and upgrades and replacement costs for aging roof or appliances. Ask the seller for copies of the utility bills and inquire of the utility companies about budget plans. Will the gas budget for your car go up if you are moving further away from the places you frequently visit? Budget all of these expenses and see if you can still afford the house.

Get Pre-approved:  Why would you want to waste time looking at houses you can’t afford?  Doing the pre-approval process ahead of time is vital. If there is something negative on your credit report, it’s best to find it early in the process, so you have time to correct it.

Ask for the homeowners and condo association documents before you make a decision: If your long- range plan is to rent out the house once you move, then you better insure that there are no rental restrictions that would preclude you from your desired goal. Thoroughly understand the Covenants and Restrictions of any area you are purchasing to ensure that they are in keeping with your lifestyle.

Be sure to read your contract before you sign it: A house is probably the largest purchase you will ever make in your life, so make sure you understand the terms of your contract. If you don’t understand any of the terms, ask your mortgage broker and your real estate agent. Either should be fully knowledgeable to address your contractual questions. I strongly advise that you retain an attorney to handle your closing, review title and loan documents, note title objections, and hold your deposit monies.

Learn about the neighborhood demographics: Do you have kids and are looking at homes without young families?  Are the majority of the residents renters and not homeowners? Define the type of neighborhood you want to live and make this one of your top priorities on your checklist.

Look beyond the staging: The psychology of staging does work; staged houses look far better than houses that are still being occupied. When you are considering a house, mentally try to remove the staging. Pay more attention to the layout of the house and the structure itself. Ugly wallpaper and paint can be easily fixed later.  Does your furniture fit the scale of the room?  Does the house have a functional kitchen?

Indecision:  Ever heard of the saying “Curiosity killed the cat”? Well, here’s another one, “Indecision killed the deal.” Not moving on a house fast enough and taking too much time to make a decision on buying the house is common as well. This indecision gives someone else the opportunity to scoop ups that home before you have a chance to make an offer.  A multiple offer situation is good for the seller, but not so much for the buyer. In this competitive real estate market with low inventory and high buyer turnout, you need to move quickly in order to get the house that you want.

Only checking online sources for mortgage rates and available homebuyer programs?  As much as everyone loves to do everything from their computer or smartphone today, this is one thing that should be done in person or with a phone call. It is always best to call a local mortgage lender and sit down in person with them to talk about the most current rates and programs available. Many of the lenders that you find online are not local and only have teaser rates on their websites. If you choose a mortgage lender that doesn’t have a local presence, a lot can change once they get the paperwork in front of them at the closing table. Insist of using an appraiser that is knowledgeable and does most of their work in area of the property.

Learn as much as you can about real estate, your budget, and your local housing market, but realize that buying a house is all about compromise, and a lot of doubt! No house is PERFECT but if you keep at it the odds are very good that you will find a house that suits your needs and will be a wonderful home for you and your family or your investment goals.

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Home Buyer Advice, Home Buyers, Real Estate, Relocation by Kim Bregman
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There is often a misconception of what a final walk through is and why it’s important.  A final walk through can sometimes be referred to as a pre-closing “inspection.”  Although you are probably excited and anxious to close on your new home, the final walk through is important and many things should checked and inspected and not overlooked.

The final walk through is NOT a home inspection.  In most cases, a buyer has had the opportunity to perform a thorough home inspection prior to finalizing the contract for purchase.  It is a common contract contingency that you should be aware of when purchasing a home. The final walk through is the time to ensure that the personal property items that were agreed to be included in the sale, are still present, that the condition of the home is substantively the same or better than the day you went under contract, check the functionality of the home’s features, and that any agreed to repairs have been made to your satisfaction.

Oftentimes, buyers negotiate sale terms to keep new appliances, light fixtures, window treatments and other installations as part of their purchases agreements. Bring your contract to purchase with you and begin your walk-through by confirming all agreed upon features are still present and in the same condition as the time of inspection.

When homes are transferred from a seller to a buyer, they are supposed to be in “broom-clean condition.”  The term “broom-clean” is a very vague, as it can mean one thing to the buyer and a different to the seller.  If there is garbage, boxes in the attic, old paint in the garage, or personal belongings from the seller in the storage areas or in the home, they should be removed by the seller at their expense prior to closing.  It is not the responsibility of the buyers to remove or dispose of the seller’s possessions that were not specifically identified as personality that was to stay with the property.

When a seller’s furniture is moved out, it’s much easier for buyers to recognize damages they may have overlooked during their initial inspections. Review surfaces, ceilings, walls and floors for any new damages such as scratched or soiled flooring and carpet, look for water damage, and cracked windows and walls.

Possibly the most important part of the final walk through is to complete a checklist of the home.  Your real estateagent should supply you with a thorough checklist and assist you with the walk-through.  The checklist should include, but not be limited to the following:

•   Check gas features, including fireplace inserts, stove and oven

•   Does the fireplace turn on with the switch

•   Do the burners warm when lit

•   Does the oven heat properly

•   Flip switches on the garbage disposal

•   Check all ceiling fans

•   Ensure the exhaust fans work properly

•   Check the AC and heat thermostats

•   Open the refrigerator; is it cool and cleaned out. Is the icemaker making ice?

•   Turn knobs on each faucet to test the handles work

•   Is the water warm indicating the water heater is functioning correctly

•   Is there proper drainage down each drain

•   Look below each sink for moisture or leaks

•   Flush each toilet and ensure they fill back up with water instead of running or leaking

•   Peer around bathrooms, kitchens, and laundry rooms for water damage

•   Check along flooring or base molding and spot any indicators of mildew or mold

•   Walk around the entire home testing each light switch

•   Are all switch covers present

•   Open and close every window

•   Make sure the windows and doors lock shut properly

•   If screens and storm windows are expected, account for each before moving to the next window.  If there are hurricane shutters that remain with the house make sure they are all in place.

•  Test to make sure the pool pump is running

•   Is the landscaping in good shape, has the grass been watered?

•   Check the garage door openers and try each control

•   Ring the doorbell

•   If an alarm system is included in the purchase agreement, test entry and disengagement

•   If the property has a sprinkler system, start it to make sure it’s functioning

•   Look at the exterior siding, roofing, chimney, or any other exterior features that the home may have.  If there has been severe weather recently this is extra important, as it’s not uncommon for roof shingles or siding to be damaged.

•   If there were items that were agreed upon between the buyer and seller to be repaired or fixed, make sure they have been completed.  A good buyers real estate agent should ask for receipts or records from any repairs that were agreed upon.

•   Look for owner’s manuals to accompany all appliances and remote controls for ceiling fans, lighting, sound systems or any other features.

Buyers agents can require sellers to meet the terms of the purchase agreement prior to closing or renegotiate new terms to cover costs of repairing any missing features or damages found during the final walk-through. This is often accomplished in conjunction with the buyer’s attorney.  If there are problems that arise from the final walk through, it’s important to address them quickly.  The final walk-through is the last chance for buyers to critically review properties before signing closing paperwork. Buyers who use the opportunity wisely tend to have the highest probability of buyer satisfaction

Filed under: Blog, Florida Real Estate, Home Buyers, Kim Around the Web, western north carolina real estate by Kim Bregman
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