The Buying Process

1. Decide to buy. How do you know if it is the right time for you to buy your first home? Here are a few tips to help you get started:

• Purchasing your own home is a great investment that provides specific financial advantages, including equity buildup, value appreciation potential, and tax benefits. (It’s also a forced savings plan that you cannot get from renting!)
• Done right, home ownership lays the foundation for a life of financial security and personal choice.
• There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run.
• Here’s the most important rule for keeping your stress to a minimum: you don’t have to know everything.

2. Hire your agent. When you are looking for a real estate professional to help you, know that above all else good agents put their clients first. The seven main roles your real estate agent will perform include:

1. Educate you about your market.
2. Analyze your wants and needs.
3. Guide you to homes that fit your criteria.
4. Coordinate the work of other needed professionals.
5. Negotiate on your behalf.
6. Check and double-check paperwork and deadlines.
7. Solve any problems that may arise.

3. Secure financing. It is normal to ask how much you can afford. Ultimately, your lender will pre-approve you for a certain amount, but YOU will decide what you’re comfortable paying every month.

Be sure to follow these six steps to financing your home:

1. Choose a loan officer (see my list of preferred lenders under the about page)
2. Make a loan application and get pre-approved.
3. Determine what you want to pay and select a loan option.
4. Submit to the lender an accepted purchase offer contract.
5. Get an appraisal and title commitment.
6. Obtain funding at closing.

4. Find your home. So you are preapproved and ready to begin your search. But how or where do you begin? The best thing is to consult with me to more accurately pinpoint the home you are looking for. The right home will meet all your important needs, and as many of your additional wants as possible. Some questions you might ask yourself include:

• What do I want my home to be close to?
• How much space do I need and why?
• Which is more critical: location or size?
• Would I be interested in a fixer-upper?
• How important is home value appreciation?
• Is neighborhood stability a priority?
• Would I be interested in a condo?
• What features and amenities do I want? Which do I really need?

You will learn as you look at homes, it is wise to refine your priorities along the way.

5. Make an offer. So you’ve found a home you love. Now you need to make a compelling offer. Look to me to explain the process and guide you through. Ultimately, the right price to offer must fairly reflect the true market value of the home you want to buy. My market research will help guide this decision.
The three basic components of your purchase offer are price, terms, and contingencies.

• Price is obviously the dollar amount you are approved for, willing and able to pay.
• Terms cover the other financial and timing factors that will be included in the offer.
• Contingencies are clauses that let you out of the transaction if the house has a problem that didn’t exist or which you were not aware of when you went under contract. They specify any event that will need to take place in order for you to fulfill the contract.

6. Perform due diligence. Just because you love a particular property does not mean that it is perfect. In fact, this is where reason has to trump emotion. You will need to have a property inspection that will hopefully expose all the issues a home might hide. This way you’ll know exactly what you are getting into before you sign closing papers.

• Your main concern is the possibility of structural damage. This can come from water damage, shifting ground, or poor construction when the house was built.
• Do not sweat the small stuff. It’s the inspector’s job to mark everything discovered no matter how large or small. Things that are easily fixed can be overlooked.
• If you have a big problem show up in your inspection report, you should bring in a specialist and if the worst-case scenario turns out to be true, you might want to walk away from the purchase.
• And even if your home passes inspection with flying colors, you will still need to buy a home owner’s insurance policy protects you against loss or damage to the property itself and against liability in case someone sustains an injury while on your property.

7. Close. You have made an offer and performed due diligence, which means you are now in the “home” stretch. But you have a few pre-closing responsibilities, and these include:

• Staying in control of your credit and finances, first and foremost.
• Keeping in touch with me and your lender and returning all phone calls and paperwork promptly.
• Communicating with me at least once or twice a week, and verifying with your lender that all mortgage funding steps are completed.
• Conducting a final walk-through of the home with me.
• Confirming with me, your home insurance professional, and lender that you have the settlement statement, certified funds, and evidence of insurance lined up prior to closing.

8. Protect your investment. You have closed and moved in, but now you will need to protect your investment for years to come. And you can do so by performing routine maintenance on your home’s systems, depending on their age and condition. A good rule of thumb is to watch for signs of leaks, damage, and wear. If you fix small problems early, you will save yourself from having to spend big money later.

After closing I can still help you with such things as providing information for your tax returns, finding contractors and repair services, and even tracking your home’s current market value.

RGS Title has created a short but informative guide on the home buying process that is useful for buyers. I feel this guide is a “must read” for anyone looking to purchase a home…even those who have purchased in the past. It explains the home buying process thoroughly, accurately and in plain English. Download it for free at: http://www.rgstitle.com/company/home_buyer_guide.asp

This following links provide additional information on the HUD-1 Settlement Statement and explain the settlement process and why it is important for you to review this document before going to settlement:

http://homebuying.about.com/cs/titleescrow/a/hud1_settlement.htm

http://www.realestatewebmasters.com/blogs/indy-realtor/2826/show/

The Selling Process

The selling process is varied and tailored to your needs. I have experience with a wide variety of transaction times including estates, relocation firms, and short sales. I also have a cadre of professionals available to assist you with home repair, staging, property appraisal and inspection. In general, the process includes the following steps:

1. Define your needs. Write down all the reasons for selling your home. Ask yourself, “Why do I want to sell and what do I expect to accomplish with the sale?” For example, a growing family may prompt your need for a larger home, or a job opportunity in another city may necessitate a move. For your goals, write down if you’d like to sell your house within a certain time frame or make a particular profit margin.

Work with me to map out the best path to achieve your objectives and set a realistic time frame for the sale.

2. Name your price. Your next objective should be to determine the best possible selling price for your house. Setting a fair asking price from the outset will generate the most activity from other real estate agents and buyers. You will need to take into account the condition of your home, what comparable homes in your neighborhood are selling for, and state of the overall market in your area. It is often difficult to remain unbiased when putting a price on your home, so my expertise is invaluable at this step. I know what comparable homes are selling for in your neighborhood and the average time those homes are sitting on the market. If you want a truly objective opinion about the price of your home, you could have an appraisal done. This typically costs a few hundred dollars.

Remember: You’re always better off setting a fair market value price than setting your price too high. Studies show that homes priced higher than 3 percent of their market value take longer to sell. If your home sits on the market for too long, potential buyers may think there is something wrong with the property. Often, when this happens, the seller has to drop the price below market value to compete with newer, reasonably priced listings.

3. Prepare your home. Most of us do not keep our homes in “showroom” condition. We tend to overlook piles of boxes in the garage, broken porch lights, and doors or windows that stick. It’s time to break out of that owner’s mindset and get your house in tiptop shape. The condition of your home will affect how quickly it sells and the price the buyer is willing to offer.

First impressions are the most important. I can help you take a fresh look at your home and suggest ways to stage it and make it more appealing to buyers.

A home with too much “personality” is harder to sell. Removing family photos, mementos and personalized décor will help buyers visualize the home as theirs.

Make minor repairs and replacements. Small defects, such as a leaky faucet, a torn screen or a worn doormat, can ruin the buyer’s first impression.

Clutter is a big no-no when showing your home to potential buyers. Make sure you have removed all knickknacks from your shelves and cleared all your bathroom and kitchen counters to make every area seem as spacious as possible.

4. Get the word out. Now that you’re ready to sell, I will set up a marketing strategy specifically for your home. There are many ways to get the word out, including:

• The Internet
• Yard signs
• Open houses
• Media advertising
• Agent-to-agent referrals
• Direct mail marketing campaigns

In addition to listing your home on the Multiple Listing Service (MLS), I use a combination of these tactics to bring the most qualified buyers to your home. I structure the marketing plan so that the first three to six weeks are the busiest.

5. Receive an offer. When you receive a written offer from a potential buyer, I will first find out whether or not the individual is prequalified or preapproved to buy your home. If so, then we will review the proposed contract, taking care to understand what is required of both parties to execute the transaction. The contract, though not limited to this list, will include the following:

• Legal description of the property
• Offer price
• Down payment
• Financing arrangements
• List of fees and who will pay them
• Deposit amount
• Inspection rights and possible repair allowances
• Method of conveying the title and who will handle the closing
• Appliances and furnishings that will stay with the home
• Settlement date
• Contingencies

At this point, you have three options: accept the contract as is, accept it with changes (a counteroffer), or reject it. Remember: Once both parties have signed a written offer, the document becomes legally binding. If you have any questions or concerns, be certain to address them with me right away.

6. Negotiate to sell. Most offers to purchase your home will require some negotiating to come to a win-win agreement. I am well versed on the intricacies of the contracts used in your area and will protect your best interest throughout the bargaining. I also know what each contract clause means, what you will net from the sale and what areas are easiest to negotiate. Some negotiable items:

• Price
• Financing
• Closing costs
• Repairs
• Appliances and fixtures
• Landscaping
• Painting
• Move-in date

Once both parties have agreed on the terms of the sale, I will prepare the contract for your signature.

7. Prepare to close. Once you accept an offer to sell your house, I will make a list of all the things you and your buyer must do before closing. The property may need to be formally appraised, surveyed, inspected or repaired. I spearhead the effort and serve as your advocate when dealing with the buyer’s agent and service providers. Depending on the written contract, you may pay for all, some or none of these items. If each procedure returns acceptable results as defined by the contract, then the sale may continue. If there are problems with the home, the terms set forth in the contract will dictate your next step. You or the buyer may decide to walk away, open a new round of negotiations or proceed to closing.

Important reminder: A few days before the closing, you will want to contact the entity that is closing the transaction and make sure the necessary documents will be ready to sign on the appropriate date. Also, begin to make arrangements for your upcoming move if you have not done so.

8. Close the transaction. “Closing” refers to the meeting where ownership of the property is legally transferred to the buyer. I will be present during the closing to guide you through the process and make sure everything goes as planned. By being present during the closing, I can mediate any last-minute issues that may arise.

After the closing, you should make a “to do” list for turning the property over to the new owners. Here is a checklist to get you started.

• Cancel electricity, gas, lawn care, cable and other routine services (see the utilities page for numbers)
• If the new owner is retaining any of the services, change the name on the account.
• Gather owner’s manuals and warranties for all conveying