Frequently Asked Questions from Buyers |
Q...Why should I get approved for a loan first?
A...There are actually 2 answers to this question. First...It helps you know what price range to target in your search. Without knowing how much a lender is willing to loan you for your purchase--or how much you feel comfortable borrowing--you waste a lot of your valuable time. Second...Being able to submit a Pre-Approval letter with your offer strengthens your offer in the eyes of the Seller. It shows you're a serious Buyer--not just someone who's "window shopping".
Q...Why do I need you? Can't I buy a home on my own?
A...Again, this question has more than 1 answer. While you don't need a real estate agent to find a home, there are several reasons why you should use a Realtor. First...It can save you a lot of time. If you're conducting your research on the internet, you're actually limited by the type of search parameters available to you. While an agent can search by age of home, School District, whether or not the home has a bedroom downstairs or a dining room, is it a "short sale" or bank owned property, condition of the home etc--you can't. As a result, you often waste a lot of time looking at homes that don't meet your objectives. Second...You need someone who's job is to protect you throughout the process. The person who's name is on the sign in front of a home that you might find has been contracted by the Seller of the home--to protect his/her best interests. Third...Your representative can help you determine the best price to offer on a home. By conducting a Market Analysis to determine what similar homes have sold for, your agent can help you determine the lowest possible price for the home. And finally...Once you've made an offer on a home, the process is just beginning--with several steps and follow-up procedures needed to bring the transaction to a successful close. One of the critical steps involves an inspection of the home...and what needs to be done to protect you throughout this very sensitive part of the process. The last thing you want is to have your Dream Home turn into a Money Pit.
Q...How do you get paid?
A...The Seller has already contracted to pay for the SOC (Selling Office Commission). This figure is posted on the listing--so agents for Buyers already know what they can expect to be paid for their time. While some agents look at the SOC before showing a home to a client--to help them know which listings pay them the most--I seldom look at this information. I believe that if I focus on your objectives (even though I might make more money selling you a different home) my earnings will potentially be offset sometime in the future. It's my hope that you'll feel comfortable recommending my services to your family and friends. Besides...it helps me sleep better at night--knowing that I didn't guide you to a home that was best for me instead of you.
Q...What if I want a NEW home--not one that someone else has already owned?
A...I'm actually a very good resource for buying a new construction home--for a couple of reasons. First...As in the case of buying a resale home, you really need someone who represents you in the purchase of a new home. While some agents who are on site at new construction communities are Buyer's agents, most site agents actually represent the Builder/Seller. When you visit a new construction community, it's always a good idea to ask to see their registration policy prior to signing their guest book. If they don't know that you're working with another Realtor, you might be obligating yourself to work with the Builder's agent. Second...I have worked extensively in new construction communities--giving me a lot of experience and insight into what to look for in a new home. I also know where the builder might be receptive to negotiation--either in price or upgrades that might be able to be included in the purchase price of the home.
Q...What about For Sale By Owner (FSBO) listings?
A...I can also help you in this situation. Most Sellers know that the Buyer for their home will probably have an agent--and are prepared to pay for that agent's services. Their primary goal in trying to sell the home themselves is to reduce their costs--by not paying for an agent to represent them. Keep in mind that Sellers want to get top dollar for their home--and might not tell you everything that's wrong with the home. For these reasons, it's still smart to have someone who represents you--someone who can help you make the best offer on the home and guide you through the inspection process. In the event you find a FSBO that interests you, give me a call with the contact information and I'll gladly make arrangements for you to see the home.
Q...Can I use my own mortgage lender?
A...If you already have a lender that you trust, that's what's important. If he/she is still in business in today's real estate market, they probably have the experience and the skills needed to help you with your purchase. If you don't already have someone that's helped you with past purchases, I really encourage you to contact Mike Dorman at Home Front Mortgage. His team is both professional and personal, with a solid commitment to guide you through the process--at fees that are extremely competitive. No matter what type of loan program you need...Mike can provide it. This includes VA loans for military personnel and/or down payment assistance programs.
Q...What would you do to help me find my next home?
A...Several things. For starters, I'd want to meet with you to get a better understanding of what you WANT in a home...and what you NEED in a home. While the optimum result is finding BOTH...buying the right home often involves tradeoffs. You might find everything you want in a home--but not what you need. My goal is to minimize the need for compromise.
I'll also want to know what type--and frequency--of communication is best for you. Are you comfortable receiving updates via e-mail? If yes...I'll be able to send you regular updates that even include interior photos of the homes. If no...the process will take longer--because some of the easy rejects won't be readily apparent.
As I mentioned, I'll also want to know how often you want me to send you updates. Do you want me to send you information as soon as a new listing comes on the market...or will weekly, bi-weekly or monthly updates be best for you?
The next step is to determine the price range that fits. Failure to determine your "Comfort Zone" for monthly payments--and what a bank might be willing to loan--will usually result in your being frustrated with the search.
Working with me will also help eliminate the frustrations you'll often experience if you try to do all of the research yourself. As I mentioned earlier...I can search for a multitude of components that are not available to you. Items such as...School District, 55+ retirement community, formal dining room (or the lack thereof), downstairs bedroom, upstairs laundry room, type of heat (gas forced air or electric), septic or public sewer system, RV parking, detached garage or shop etc. The list goes on--including the ability to target investment opportunities such as bank owned property and/or homes in a "short sale" status. These are homes that are for sale at a price BELOW what the seller still owes the bank.
While I can help you find homes with feature such as these, there's also another very important search that I can do for you. I can target specific neighborhoods and/or communities. Since knowing WHERE you want to live is usually one of your most important decisions, this can be an invaluable service. You might be able to search by city...but I can search by map and grid coordinates--and even target some neighborhoods by name.
Here's another example of the service I provide. When one of my past clients found a neighborhood that she wanted to call home...I sent postcards to the owners of all single story homes in the neighborhood--asking them to contact me if they ever decided to move. Shortly after that...my client moved into her new rambler in the community. She loves it.
A Quick Recap of Some of the Services I Provide:
Once we've determined the "What, Where, How Much and How Often?"...my work begins--with a multitude of actions needed to carry out the following steps in the home buying process:
* If you don't know much about the area, I'll start by taking you on a tour of communities that I think might offer the type of homes and/or neighborhoods you're hoping to find. My goal is to help you get comfortable with your surroundings...and start to get a feel for where you want to focus your search.
* Research homes that meet your objectives.
* Forward information on those home to you for your review.
* Conduct tours of the homes that interest you--to help you fine tune your search objectives. Before taking you on those tours, I'll also compile a detailed recap of information on each of the homes--including information on homes that have sold around it--in an effort to help you fully assess the the pros and cons of each home.
* Based on feedback from those tours--adjust search parameters as needed.
* If needed, conduct repeat tours of homes that peak your interest.
* Once we find the home you want, I'll conduct a Market Analysis of similar homes in the area--to help negotiate a reasonable price on the home.
* Once the offer has been accepted, I'll arrange for an inspection of the home--to help protect you from issues that might not be apparent during your initial visits to the home.
* In the event issues surface during the inspection, I'll negotiate with the Seller on any items needing repair and/or replacement--or help you terminate your contract.
* When all inspection issues have been resolved to your satisfaction, it then becomes a process of working with escrow, your lender and the other agent to ensure a smooth and timely close.
* Prior to closing, I'll also provide you with information on how to arrange for services such as electricity, gas, water, garbage, sewer, TV, mail and schools.
* And finally...Deliver your keys and several change of address postcards to help you notify friends and family of your new address.
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