The Home Buying Guide In our experience, a home isn't a dream home because of its room dimensions. It's about how you feel when you walk through the front door. And the way you can instantly envision your life unfolding there. This is about more than real estate. It's about your life and your dreams. We understand you are looking for a new home. And we want to be the real estate professionals to help you. We work with each of our clients individually, taking the time to understand their unique needs and lifestyle, and we want to do the same for you. We love matching our clients with the home they have always imagined. It's incredibly fulfilling to know we are helping them open a new chapter of their lives. That's why we work so hard to not only find that perfect home, but also to handle every last detail of the purchase process, from negotiating the terms of sale to recommending moving companies. This package contains helpful information for home buyers, including an overview of the entire purchase process, answers to frequently asked questions, and fact sheets to help us discover the home and neighborhood characteristics most important to you. After you've had the chance to review this information, contact us. We'd like to prepare an in-depth, customized package of homes for you to review, highlighting properties that meet your criteria in neighborhoods that suit your lifestyle. We appreciate the opportunity to earn your business. Buying a home Brokerage Relationships Important Agency Disclosure Information It’s all about you The home buying process Your lifestyle interview The home wish list The mortgage and loan process Your home search Making an offer Now we close your transaction Closing costs Moving checklist Let’s adhere to the plan What my clients say Frequently asked questions Using Realtors to purchase new homes Take notes on homes you tour Brokerage Relationships In North & South Carolina, Real Estate brokers and their salespersons are required to disclose the type of working relationship they have with the buyers in a real estate transaction. There are several types of relationships that are available to you. You should understand these at the time a broker provides specific assistance to you in buying real estate. Buyer’s Agent and Seller’s Agent relationships are commonly referred to as “agency” relationships and carry with them legal duties and responsibilities for the broker as well as for the buyer and seller. Buyer’s Agent A Buyer’s Agent acts solely on behalf of the buyer and owes duties to the buyer which include the utmost good faith, loyalty, and fidelity. The agent will negotiate on behalf of, and act as an advocate for: the buyer. A separate written buyer’s agreement is required which sets forth the duties and obligations of the parties. Seller’s Agent A Seller’s Agent acts solely on behalf of the seller and owes duties to the seller which include the utmost good faith, loyalty, and fidelity. The agent will negotiate on behalf of, and act as an advocate for: the seller. A separate written listing agreement is required which sets forth the duties and obligations of the parties. ~ IMPORTANT AGENCY DISCLOSURE INFORMATION ~ Relatively new changes in North & South Carolina real estate law require that we inform you of your options in choosing what type of agency relationship we will employ when we work with you, and it is our pleasure to do so. Our preference is to work only for you as your Exclusive Buyer Agents in the purchase transaction. The listing agent on all properties that we show you is legally representing only the interests of the seller. The Exclusive Buyer Agency Agreement allows us to act on your behalf by assisting you in negotiations, disclosing any available information about seller motivation, coaching and counseling you on the intricate details, and providing you with sales information on comparable properties to help you determine a fair market price. Without that authorization from you, licensing law requires that we represent the seller as a “subagent”, and that we attempt to obtain the best possible price for the seller. By not authorizing us to be your Exclusive Buyer Agents, you are stating that you do not want representation from us and that you understand that we will be representing the seller. We need to know what agency relationship you prefer prior to showing any homes to you. Please review the attached information and decide how you would like us to work with you. We will be happy to answer any questions you may have about agency. Please note that our services to you are FREE, we get compensated by the seller. Thank you, Our real estate business has been built around one guiding principle: It's all about you. Your needs Your dreams Your concerns Your questions Your finances Your time Your life Our focus is on your complete satisfaction. In fact, we work to get the job done so well, you will want to tell your friends and associates about it. Maybe that's why over 70% of our business comes from repeat customers and referrals. Good service speaks for itself. we look forward to the opportunity to earn your business too. There are a lot of details to be handled when purchasing a home. This overview is designed to summarize the various steps along the path of qualifying, finding and buying a home. It is our job to streamline the steps for you, ensuring everything is completed according to plan. In addition to this summary, we have included additional information and worksheets to make sure we find the right home, negotiate the best price and terms, and take care of all the details: The Home Buying Process 1. Consultation to analyze your specific needs and wishes your lifestyle interview, your home wish list, the neighborhood of your dreams 2. Financial pre-qualification or pre-approval the mortgage and loan process 3. Select and view properties the home tour, frequently asked questions 4. Write an offer to purchase making an offer 5. Negotiate the purchase offer making an offer 6. Final mortgage application the mortgage and loan process 7. Underwriting the mortgage and loan process 8. Loan approval the mortgage and loan process 9. Title company the mortgage and loan process, closing 101 10. Closing closing 101 11. Moving moving checklist, above and beyond A home is about more than the number of bedrooms or bathrooms. It's about how you feel when you're in it. To really pinpoint the type of home you're looking for, consider the following questions: 1. What makes you comfortable in your current home? Is there anything in particular you'd like to duplicate? ________________________________________________________ ________________________________________________________ 2. What is your primary reason for searching for a new home? ________________________________________________________ ________________________________________________________ 3. How soon are you planning to move?________________________________________________________ ________________________________________________________ 4. Do you entertain a lot? What areas of your home will you primarily use to entertain? ________________________________________________________ ________________________________________________________ 5. Do you have children? What are their ages, interests and activities? ________________________________________________________ ________________________________________________________ 6. Do you prefer to live close to where you work? ________________________________________________________ ________________________________________________________ 7. Do you have any special needs or interests? ________________________________________________________ ________________________________________________________ 8. When you imagine your dream home, what do you see? What images come to mind? ________________________________________________________ ________________________________________________________ Creating a list of the desired features and amenities for your new home will help us target the properties that meet your criteria. Please consider the following and record any notes or preferences 1. House style_________________________________ 2. Number of bedrooms________________________ 3. Number of bathrooms________________________ 4. Living room________________________________ 5. Dining room_______________________________ 6. Family room_______________________________ 7. Square Footage __________________________________ 8. Home office_________________________________ 9. Kitchen__________________________________ 10. Basement_______________________________ 11. Garage stalls____________________________ 12. Lot size_________________________________ 13. Amenities___________________________________ 14. Age of property__________________________ 15. Desired Area ____________________________________ 16. Price Range_____________________________ Other requirements or comments: _______________________________________________________________________ ________________________________________________________________________ The mortgage and loan process Funding your home purchase 1. Financial pre-qualification or pre-approval Application & interview Buyer provides pertinent documentation, including verification of employment Credit report is requested Appraisal scheduled for current home owned, if any 2. Underwriting Loan package is submitted to underwriter for approval 3. Loan Approval Parties are notified of approval Loan documents are completed and sent to title 4. Title Company Title exam, insurance and title survey conducted Borrowers come in for final signatures 5. Funding Lender reviews the loan package Funds are transferred by wire Why pre-qualify? We recommend our buyers get pre-qualified before beginning their home search. Knowing exactly how much you can comfortably spend on a home reduces the potential frustration of looking at homes beyond your means. Your home search We love helping buyers find their dream home. That's why we work with each client individually, taking the time to understand their unique lifestyles, needs and wishes. This is about more than a certain number of bedrooms or a particular zip code. This is about your life. And it's important to us. When you work with us, you get: - A knowledgeable and professional REALTORs®
- A committed ally to negotiate on your behalf
- The backing of a trusted company, Wilkinson & Associates Real Estate
We have the systems in place to streamline the home buying process for you. As part of our service, we will commit to helping you with your home search by: - Previewing homes in advance on your behalf
- Personally touring homes and neighborhoods with you
- Keeping you informed of new homes on the market
- Helping you preview homes on the Internet
- Creating your own personal website search
- Advising you of other homes that have sold and for how much
- Working with you until we find the home of your dreams
Making An Offer Once you have found the property you want, we will write a purchase agreement. While much of the agreement is standard, there are a few areas that we can negotiate: The Price What you offer on a property depends on a number of factors, including its condition, length of time on the market, buyer activity, and the urgency of the seller. While some buyers want to make a very low offer, just to see if the seller will accept, this often isn't a smart choice, because the seller may be insulted and decide not to negotiate at all. The Move-in Date If you can be flexible on the possession date, the seller will be more apt to choose your offers over others. Additional Property Often the seller plans on leaving major appliances in the home, however, which items stay or go is often a matter of negotiation. Typically you will not be present at the offer presentation; we will present it to the listing agent and/or seller. The seller will then do one of the following: • Accept the offer • Reject the offer • Counter the offer with changes By far the most common is the counter offer. In these cases, our experience and negotiating skills become powerful in representing your best interests. When a counter offer is presented, we will work together to review each specific area of the counter offer, making sure that we move forward with your goals in mind and ensuring that we negotiate the best possible price and terms on your behalf. Now we CLOSE your Transaction! What is a Real Estate “Closing?” A “closing” is the meeting the Buyer, Seller, and their agents (optional), and representative from the lending institution and title company wherein the actual transfer of title to the property occurs. The purchase agreement or contract you have signed describes the property, states the purchase price and terms, sets forth the method of payment, and usually names the date and place where the closing or actual transfer of the property title and keys will occur. This meeting is also referred to as the settlement. The title company transferring ownership of the property to you will prepare a new deed. Your lender will require you to sign a document, usually a promissory note, as evidence that you are personally responsible for repaying the loan. You will also sign a mortgage or deed of trust on the property as security to the lender for the loan. The mortgage or deed of trust gives the lender the right to sell the property if you fail to make the payments. Before you exchange these papers, the property may be surveyed, appraised, or inspected, and the ownership of title will be checked in county and court records. What Should I do to Prepare for the Closing? There are two kinds of title insurance. A lender or mortgagee’s title insurance policy protects only the lending institution. Lenders require this type of insurance and require the borrower to pay for it. That does not mean that the borrower will receive its protection. An owner’s policy is necessary to protect the owner against loss. You will also be required to pay all fees and closing costs in the form of “guaranteed funds” such as a Cashier’s Check. You will be notified of the exact amount by your agent or escrow officer at closing. What is an Escrow Account? An escrow account is a neutral depository for funds that will be used to pay expenses incurred by the property, such as taxes, assessments, property insurance, or mortgage insurance premiums which fall due in the future. You will pay one-twelfth of the annual amount of these bills each month with your regular mortgage payment. When the bills fall due, they are paid by the lender from the special account. At closing, it may be necessary to pay enough into the account to cover these amounts for several months so that funds will be available to pay the bills as they fall due. You may also be required to refund items prepaid by the Seller. For example, if the Seller has paid the special assessments or taxes for that year, you may be required to refund the value of the months remaining the year when you take possession of the property. An escrow fee is usually charged to set up the account. ~ Closing Cost Estimates ~ (B = buyer cost S = Seller cost) Loan Origination Fee: (B) A fee that covers the lender’s administrative costs in connection with he loan. Typically 1% of the loan amount. Can sometimes be financed into the loan or waived at a higher rate. Discount Points: (B)/(S) A one-time charge used to adjust the lender’s yield on the loan to match what market conditions demand. One point=1% of the loan amount. Average = 0-3% of the loan amount Appraisal Fee: (B) A statement of property value made by an independent appraiser. Conventional appraisals average $325, FHA/VA appraisals average $275 Appraisal Review: (B) Lender’s cost to review the appraisal and inspect the property if necessary. Average $25 Credit Report: (B) A report obtained from one or more reporting agencies to check the borrower’s credit history. Average $50 Express Charge: (S) Charges to defray the cost of expressing the loan package overnight to the lender. Average $30 Underwriting Fee: (B) A fee charged by some investors to underwrite and approve the loan application. Average $100-$300 Tax Service Fee: (B) A one time fee charged to the lender by an independent tax reporting agency to search tax records and route the property tax billings to the lender for payment. Average $75 Mortgage Insurance: (B) This protects the lender from loss due to default, and allows the borrower to obtain loans with less than 20% down. Cost varies depending on the loan-to-value ratio, type of loan, etc Hazard Insurance: (B) This protects you, the owner, against loss due to fire, theft and natural hazards. The first 14 months are paid at closing Title Insurance: (B)/(S) Protects you, the buyer and seller, against loss due to claims against the property, which cannot be found on public record. Average $2 per $1000 of coverage Revenue/Deed Stamps: (S) Fee charged by North Carolina. $2 per $1000 sales price Interim Interest: (B)/(S) Interest on the new loan that is collected at closing to pay through the end of that month. Your first payment will not be due until the first full month following closing! Escrow Deposits: (B) Funds held in an account by the lender to assure future payment of the hazard insurance, property taxes and mortgage insurance. Average is 2 mo’s hazard insurance, 2 mo’s mortgage insurance and 4 mo’s taxes Attorney Fees: (B) Fees for legal services of the closing attorney for title examination, obtaining title insurance, and conducting the closing. Average $475 Recording Fees: (B)/(S) Fees paid to the Clerk of the Court to record the deed, deed of trust and any other necessary documents. Average $20 Survey: (B) Property survey by an independent surveyor that shows the property lot lines, easements, encroachments, and any improvements. Average $300 - $400 Termite Inspection: (B) Self-explanatory. Average $70 Mechanical/ Structural Inspection: (B) Fee paid to an independent, licensed inspector to visually inspect the mechanical and structural components of the property. Average $175-$400 Radon Test: (B) Fee for testing to determine the presence/absence and levels of radon. Average $75 Well & Septic: (B) Tests to determine the adequacy and condition of the well and septic systems. Average $150 Moving checklist New Telephone Number: ____________________________________________ New Address: _____________________________________________________ Before you move, you should contact the following companies and service providers: Utilities: ______Electric ______Telephone ______Water ______Cable ______Gas Professional Services: ______Broker ______Accountant ______Doctor ______Dentist ______Lawyer Government: ______Internal Revenue Service ______Post Office ______Schools ______State Licensing ______Library ______Veterans Administration Clubs: ______Health & Fitness ______Country Club Insurance Companies: ______Accidental ______Auto ______Health ______Home ______Life ______Renters Business Accounts: ______Banks ______Cellular Phone ______Department Stores ______Finance Companies/Credit Cards Subscriptions: ______Magazines ______Newspapers Miscellaneous: ______Business Associates ______House of Worship ______Drug Store ______Dry Cleaner ______Hair Stylist Let’s Adhere to “The Plan” to Secure Your Dream Home Quickly! A successful real estate transaction hinges on numerous details involving deadlines that must be met so that you can move into your dream home as soon as possible. TO DO: | DATE COMPLETED: | ü Loan Application:
(Application fee is due at this time). |
| ü Seller’s Disclosure must be signed: | | ü Set inspection date and time: | | ü Written notice due – all items from the inspection that you wish to be repaired: |
| ü Negotiation of inspection repair items complete: | | ü Title Commitment due: | | ü Insurance: (You are required to arrange for insurance coverage and to inform your mortgage company of your agent’s name and phone number). |
| ü Loan approval: | | ü Closing Date: | |
Please note: During the loan and home-buying process, you will be asked to supply documentation, respond to phone calls requesting information, schedule dates into your calendar, etc…. Please respond quickly to these requests so that your transaction does not encounter problems. Frequently asked questions How will you tell me about the newest homes available? The Multiple Listing Service website provides up-to-date information for every home on the market. We constantly check the New on Market list so we can be on the lookout for my clients. We will get you this information right away by phone and/or e-mail. Will you inform me of homes from all real estate companies or only Wilknsons & Associates Realty? We will keep you informed of all homes. We want to help you find your dream home, which means we need to stay on top of every home that's available in the market. Can you help me find new construction homes? Yes, we can work with most builders and get you the information you need to make a decision. On your first visit with the builder, we will accompany you. By using our services with a new construction home purchase, you will receive the services we offer, as well as those provided by the builder, at no additional cost. How does for sale by owner (FSBO) work? Homeowners trying to sell their home without agent representation are usually doing so in the hopes of saving the commission. If you see a FSBO and want the advantages of our services, let us contact the owner for you and make an appointment. Most times the homeowner will work with an agent, even though their home is not listed, since the agent is introducing a potential buyer to their property. Can we go back through our property again once an offer is made, but before possession? Usually we can notify the seller and schedule a convenient time to visit the property again. Immediately before the closing, we will schedule a final walk-through and inspection of your new home. Once my offer is accepted, what should I do? Celebrate and focus on moving into your new home! You will want to schedule your move, pack items, and notify businesses of your address change. We will provide you with a moving checklist to help you remember all the details. We will also give you a copy of the HUD statement, which will indicate the amount you will need to bring to closing. Using a Realtor to Purchase a New Home Why should I use an Agent to purchase a new home? The advantages of having us help you purchase a new home are the same as those for purchasing a resale home…knowledge of the market, help in finding the perfect home quickly, expertise in contract writing/negotiation, and closing assistance. The builder has a professional representative watching out for his needs, and you need the same expert representation. Buying a new home is a little more difficult and time-consuming than buying a resale. We can professionally guide you through this process. We have experience working with builders, have access to a database of information about subdivisions, floor plans, etc. We are also familiar with new home warranties and builders purchase contracts. It is very important that your interests be professionally represented when you are entering into a contract for a semi-custom or build-to-suit home. These transactions are complex and the contract details must be exact in order to protect you and to ensure you get exactly the home you want! Is there any advantage to not using an Agent to purchase a new home? No. There is no financial advantage for you to buy directly from the builder. Builders have a “single-price” policy, meaning you will be charged the same price whether your interests are represented by an Agent or not. Just as in any resale, the Seller pays your Agent’s fee. REMEMBER – the Builder requires that your Agent accompany you on your first visit to the Builder’s sales office, or they will NOT PAY your representative’s fee! |