Thinking about buying a home? You've come to the right place. Real
Living, the nation’s fifth-largest residential real estate company,
offers the most homes for sale throughout the Midwest and Southern
Florida. No real estate company makes buying a home easier.
Purchasing your first home? Expanding for a growing family? Scaling down
after a lifetime of achievement or seeking a "fine home" property? We
can help.
We’ll answer your questions about the first steps you need to take and
explain the home buying process, help you determine what features you’re
looking for, and provide you with the opportunity to eliminate extra
steps in the purchase and financing process.
You're ready to make a move – and your next home is waiting for
you somewhere out there! Let Real Living and Teresa Butler help
you by:
1.
Providing a Comparative Market Analysis
A "comparative market analysis" or "CMA" is an overview of
property values, prepared by an agent. It includes data on
recent sales in a specific neighborhood, along with homes that
are presently on the market.
2.
Facilitating Financing
Unless you're a cash buyer, you'll need to apply for and acquire
a mortgage loan. Teresa can help you select a lender
and coordinate timing and paperwork.
3.
Streamlining Your Home Search
Teresa will work on your behalf to find your new home, first
expanding your choices then helping you narrow the field. She will set-up home tours, send you a suggested
tour of homes that match your needs, and provide maps and
directions by e-mail, U.S. mail or fax.
4.
Preparing Required Documents
Helping you write your purchase offer is one of the most
significant areas of assistance provided by Teresa Butler. Depend on
her expertise to manage all the paperwork and
appropriate documents.
5.
Evaluating/Negotiating Offers and Counter-Offers
While it may be true that anything is negotiable, it may not be
in your best interest. Teresa is skilled in negotiation and is your
best ally in a competitive market.
6.
Counseling for Contract Acceptance
Teresa is an objective professional in
your home purchase. Where emotion might cloud your better
judgment, you can rely on her to advise you of your
options throughout the transaction and make sure your interests
are protected.
7.
Setting Up Inspections
Sellers in Ohio must disclose material facts about their home's
condition to interested buying prospects. Buyers may protect
their own interests by acquiring various inspections;
municipalities and lenders sometimes require additional
once-overs. Teresa can help you determine what you
need, make the appointments and accompany you to the
inspections.
8.
Negotiating Disputes/Issues
Even the smoothest, simplest real estate transaction involves
two parties with needs and objectives that may differ. Teresa provides skilled negotiation, mediation and
conflict resolution.
9.
Providing Contingency Resolution
Contractual contingencies are terms that must be met before an
agreement is binding. The written contingency, therefore, must
also be removed in writing, by a specified date, before the
contract can be fully in effect. Whether it's financing,
inspection or any other item your agreement is "subject to,"
Teresa will assist you in understanding
the fulfillment and removal of contractual conditions.
10.
Facilitating Closing
The No. 1 irritant among home buyers is unanticipated
difficulties gaining possession of the home they purchased.
Teresa will make it happen, finalizing the
transfer of utilities, house keys and ownership.
Understanding agency relationships is an
important part of buying or selling a home. By definition, an
"agent" is someone who represents the interests of another
person or entity. Real estate agents (and the brokers who hold
their licenses) may represent a home seller or buyer – or both,
or neither.
Laws governing agency relationships differ from state to state
and agency policies differ among real estate companies, but here
are some basics:
When a real estate agent/broker represents a buyer or
seller, that consumer is considered a client to whom
"fiduciary duties" are owed. These duties can include
confidentiality, obedience, fidelity, loyalty, accounting
and reasonable skill and care.
When a real estate agent/broker does not represent a
buyer or seller, that consumer is considered a customer.
Though customers and real estate agents do not have a
fiduciary relationship, the real estate professional has an
obligation of honesty to all parties with whom she/he comes
into contact.
In many states, real estate brokers may choose what types of
agency they will practice. The options include:
Single agency
A single agency represents either the buyer or the seller.
Single agents must:
Be loyal and act in your best interests;
Obey your lawful instructions;
Protect your confidences;
Exercise reasonable skill and diligence when answering
your questions;
Be accountable for handling funds and paperwork;
Present all offers in a timely fashion; and
Execute other duties as outlined in your listing
agreement or buyer's agency contract.
Dual agency
A dual agency represents both the buyer and seller, with
disclosure to both parties. Among other tasks, dual agents must:
Treat all parties to the transaction fairly;
Disclose any material defects in the property;
Facilitate the sale of the property following contract
acceptance; and
In nearly every state, a real estate agent is required
by law to disclose the party (seller or buyer) in whose
interest she/he is working. Such disclosure is usually made
in writing, via an "Agency Disclosure Form" and/or broker
document.
When you begin your home search, the range of
home options can be overwhelming. Our research shows organizing
your thoughts in advance of your actual purchase, will help lead
you to the type of community, neighborhood and home that’s right
for you. As a result, we created a detailed questionnaire to
help you identify and prioritize the features you’re looking for
in your next home. This will help Teresa in finding your dream
home.
In what price range do you expect to purchase
your next home?
Between $_____________ and $_____________
Are schools a factor? If yes, what must
you take into consideration (i.e., want a specific
school system, want children to be able to walk to
school, etc.)?
Are They For
You?
Condominiums continue to be one of the most exciting
forms of home ownership in the United States today.
Their popularity increases as more and more people
recognize that condominium home ownership combines the
desirable values of home ownership with the numerous
benefits of community living.
In its purest form, a condominium is defined as “the
ownership of a single unit in a multiunit project
together with an undivided interest in the common
(jointly owned and used) areas and facilities.”
Cluster Info
As the owner of a condominium unit, you are relieved of
the maintenance responsibilities specified in the
condominium documents, which you will receive prior to
purchasing your new home. Usually this means your
condominium’s grounds and common areas, mutually owned
community facilities, and, in most cases, the upkeep of
the exterior of your home will be maintained by
professionals. In addition, you may have recreational
and social facilities available to you.
Closing
The closing process involves an attorney or title company
representative, all buyers, listing and selling brokers and all
owners. The home seller should bring all warranties on equipment
and any instructions on equipment maintenance or operation.
The attorney or title company will have searched the title,
provided title insurance and obtained old and new lender
instructions. All unresolved walk-through deficiencies must also
be resolved at this time.
Closings follow different customs in different markets; in some
areas, "round table" closings bring all parties together at the
closing table; while in other areas, buyers and sellers complete
the process through separate, individual appointments with the
title company. Ask your Agent to explain what's customary in
your area.
The attorney or title company representative will explain the
deed of trust or mortgage; the deed of trust note or mortgage
note; VA, FHA or lender forms; and settlement sheets. The buyer
needs to sign these documents, and pay the balance of the down
payment as well as the buyer's closing costs with a cashier's or
certified check.
Signing on the
Dotted Line
The escrow agent will explain the settlement sheets to the
seller and obtain their signature on both the sheets and the
deed. The seller then must pay the appropriate closing costs.
If the seller's taxes or insurance have been escrowed, the
seller will receive any money accumulated in the account for
bills not yet due.
Additionally, the seller will be reimbursed for any money paid
in advance and not used, such as property taxes. The seller will
receive these refunds at or after settlement, depending upon the
area. Taxes and home owner's dues or condominium fees will be
pro-rated on a daily basis. Seller, buyer and brokers are
supplied a copy of the settlement sheets for their records.
Move-In
Your moving date is determined in negotiation with the seller;
it may or may not coincide with your closing date. Your Agent
will write your purchase agreement with a specific timeline in
mind, reflecting your needs and what the seller can accommodate.
Whether you're able to move in immediately upon closing (which
is sometimes very workable, especially in the case of homes that
are already vacant), or five, 10 or 15 days thereafter – it’s
all negotiable.
How are real estate agents paid?
Real estate agents (and the brokers with whom they are licensed) are
usually paid a commission. A commission is a fee, often calculated as a
percentage of a home's sale price, paid to a real estate broker. The
broker then divides this fee, sharing it with the real estate agent and
cooperating broker/agent (if any) in the transaction.
Payment for real estate services may also be charged as a flat fee,
irrespective of sale price.
How are buyer's agents compensated?
It used to be that seller-only agency was "customary" in residential
real estate. The real estate commission was thought to be paid by the
home's seller, deducted from the home sale proceeds at the time of
closing. Real estate agents and brokers represented the interests of the
property's seller; the buyer was unrepresented in the transaction – and
usually not even aware that this was the case!
This "conventional wisdom" changed in Ohio, and across most of America,
during the 1990s: without buyers, nothing sells. The real estate
commission is derived from the proceeds of the home sale, and is really
paid by both buyer and seller. Both parties are entitled to an "agency
relationship," and the representation it entails.
With the advent of buyer agency, home buyers are now able to be fully
represented by a real estate agent in the purchase of property. In most
states, it's rare that buyers would pay their agent/broker directly for
services in finding and purchasing a home. If a broker does charge
buyers a direct fee, it should be outlined in an exclusive agency
agreement that the buyer signs when engaging the broker.
When a buyer is represented by a real estate agent, she/he comes to
terms on which services the buyer-client is seeking, and the manner in
which the agent will be compensated for providing those services. In
most cases, a fee or commission is still derived from the seller's
proceeds of sale, and shared between the seller's (listing) and buyer's
(selling) agents and brokers.
What does a real estate commission typically
include?
Real estate brokers must independently determine their costs of doing
business, calculating both fixed and variable expenses. In addition to
maintaining their office's business environment, brokers incur many
costs as they market and promote their listed properties. Some companies
market all of their listings consistently – in classified ads, home
books and other print media via television home shows, Internet Web
sites and telephone hotlines.
Other companies vary, allowing individual real estate agents to select
which marketing their clients will have. Be sure you know what you're
being offered. Regardless of how many or few services you're selecting,
the commission generally remains a "standard" fee, stated in the
company's listing agreement as a percentage of the eventual sale price.
Is commission negotiable?
Yes, in every state and on every transaction, commission is by law
negotiable at the time it is established. In most cases, this means that
the commission will be established between the seller and the agent who
lists his/her home, long before a buyer is present.
Buyers and sellers should refrain from attempting to negotiate
commission at the closing table, when an offer to purchase is presented.
At that point, a specific fee has been established for services from the
real estate company; those services have resulted in the sale of the
home. Payment should proceed as it was contracted. Think of it this way:
would you ask a doctor to lower a fee, after your appendix was
successfully removed?
How might payment of a buyer's agent differ from a
"traditional" model?
One scenario might involve a home buyer, her broker and agent becoming
parties to an Exclusive Agency Agreement, which could state the terms
and conditions that will result in a fee paid "out-of-pocket" by the
purchaser. When a home is chosen, and a contract for its purchase is
written and accepted, the buyer could pay the fee as outlined in the
agreement.
Another scenario might involve a buyer who must find the right house
within a tight timeframe. Not just any house – but one overlooking a
lake, with boat dockage and an in-law suite. Locating such a specific
property quickly may require exceptional work from a broker/agent, and
the home buyer might agree to pay a cash "incentive."
Q. What typically goes into an
agreement for buyer representation? A. Like any contract, a buyer
representation agreement needs beginning and ending dates,
acknowledgement of your willingness to be represented by the company and
its agent, and what (if anything) you will pay for real estate-related
services. Buyer agreements may also indicate whether you'll work only
with one company/agent or several.
Q. What is an Agency Disclosure? A. An Agency Disclosure is a state-required
document, disclosing to you as a principal in a real estate transaction
(in this case, the buyer) whom the agent(s) in that transaction
represent. A state's Agency Disclosure simply notifies you of that
state's agency laws; it does not obligate you to work with any
particular agent or broker.
Q. How are buyer's agents compensated? A. It used to be that seller-only agency
was "customary" in residential real estate. The real estate commission
was paid by the home's seller and deducted from the proceeds at the time
of closing. Real estate agents (and the brokers with whom they were
licensed) represented the interests of the property's seller. The buyer,
however, was unrepresented in the transaction – and usually not even
aware that this was the case!
With the advent of buyer agency, this need no longer be the case. Home
buyers are now able to be fully represented by a real estate agent in
the purchase of property.
The buyer and real estate agent come to terms on which services the
buyer-client is seeking, and the manner in which the agent will be
compensated for providing those services. In most cases, a fee or
commission is derived from the sellers proceeds of sale and shared
between the seller's (listing) and buyer's (selling) agents. In some
cases, the buyer makes a direct payment to his or her agent.
Buyers sometimes pay their agent/broker directly for services in finding
and purchasing a home. If a broker charges buyers a direct fee, it
should be outlined in an exclusive agency agreement that the buyer signs
when engaging the broker.
Payment arrangements vary, depending on market conditions, customary
practices and consumer expectation. Some eager home buyers choose to
offer an "incentive," giving their real estate agent additional
motivation (generally a cash bonus when title transfers) to find them
the "right" property.
Any of these options may be attractive to a home buyer in a specific
marketplace. The law of "supply and demand" predominates in real estate.
So, as you interview prospective agents and weigh their respective
services, consider which compensation options will move you toward your
home ownership goal with terms and conditions appropriate to your
individual needs.
Q. Is Real Living a member of the Multiple
Listing Service? A. Yes – in every market we serve, Real
Living is a member of the local MLS, as well as being members of the
national, state and local Associations/Boards of Realtors®.
Q. Do your real estate agents cooperate with
other companies' agents? A. Our agents work according to specific
laws, regulations and customs in their respective market areas. In all
markets Real Living serves, brokers and agents from different companies
work cooperatively, showing and selling each other's listed properties.
Q. Should I buy first ... or sell first? A. The answer to this question lies
squarely with you. Do you need the equity that's built up in your
present home to complete the purchase of your new home? If so, you
either need to sell first or consider a bridge loan or house sale
contingency. We strongly suggest that you engage a real estate agent
with whom you can enter a trusting relationship. Then discuss this
question with him or her, touching on every aspect of what it may mean
for your particular situation.
Q. I’m thinking about buying a home. Where do I
start? A. The first step in the plan for potential
homebuyers is a credit check. It’s best to keep an eye on your credit
reports so you can spot any mistakes and dispute them. Also, avoid
running up high credit card bills in the months prior to buying a home.
These two things will help you in the next phase of your game plan,
pre-approval on a mortgage. A full-service real estate broker will be
able to help you with this portion of the plan. Pre-approval includes
analyzing your income, assets and present debt to estimate how much
house you can afford. This means the lender has committed to loaning you
the money subject to the house you choose to buy. Being pre-approved for
a loan will make you attractive to sellers because the contract won’t be
tied up with financial issues.
After you know how much you can spend, you are in the homestretch. This
is the time for you to become familiar with neighborhoods and the
features of a home. Educate yourself by visiting local real estate Web
sites and viewing the inventory of listings. This is also the time for
you to decide what you want and need in a home.
A solid game plan needs a good coach. A Real Living Realtor can help you
through all steps of the plan, prepare you for any unforeseen problems
and eventually help you to buy the home of your dreams.
Q. Why do I need an agent to help me find a
home with all of the technology and advertising available? A. The Internet and newspaper ads are good
places to start researching what the current housing market is like. You
can also find information to help answer many of your financing
questions. Once you have looked at what’s available to you it’s time to
get a professional involved. You might spend hours scanning newspaper
ads and home magazines, driving through neighborhoods looking for “for
sale” signs or phoning on individual listings, and still miss the
opportunity to see some of the best homes available. A professional Real
Living agent will save you time, money and make a wealth of information
resources available to you … so together you can find that special home.
Q. What should I consider when I start to look
for a home? A. First, put together a list of features
and benefits you want in a home. Think of such things as pricing,
location, size and amenities. If you can’t get a home at the price you
want with all the features you are looking for, figure out what features
are most important to you and rank them in priority so you know what
you’re willing to give-and-take. Would you rather have a large kitchen
and smaller bedrooms? Also consider your needs in the future. Maybe now
is the time to buy a larger home rather than expanding a smaller home in
the future. Your Realtor can also help you compare the price of homes
with the features you are looking for or suggest alternate uses of
space.
Q. How do I choose between renting or buying? A. Owning a home offers tax benefits as
well as the freedom to make decisions about your home. Homeowners,
unlike renters, can secure a fixed-rate loan and lock in their monthly
payments and make investment plans knowing these expenses won’t change
substantially. However, rent can go up each year without the renter’s
input. Renters are at the whim of their landlord, while homeowners are
in control of their property when it comes to decisions, such as whether
they allow pets, any decorating or improvements that are permanent.
Q. What do all of those abbreviations in the
property ads mean? A. If you find yourself stumbling to
understand a description of a property, you’re not alone. We’ve composed
a list of some of the most frequently used abbreviations below for your
reference.
BA
Bath
FDR
Formal Dining Room
BR
Bedroom
LR
Living Room
MBR
Master Bedroom
DR
Dining Room
FP, frplc, fplc
Fireplace
FR
Family Room
WBFP
Wood Burning Fireplace
LL
Lover Level
entr
Entrance
grmet kit
Gourmet Kitchen
dck
Deck
pvt
Private
gar
Garage
pwdr rm
Powder Room
brk
Brick
upr
Upper Floor
HDW, HWF, Hdwd
Hardwood Floors
Q. As a buyer, do I have the
right to obtain past information about the property I am interested in
purchasing? A. Yes. Sellers are required to disclose
all known defects associated with the property. With the help of your
Realtor, you can find out what has happened to the property in the past.
You should make careful observations, examine the property and request
or otherwise obtain any records important to you. These requests should
be in writing. If you decide to put an offer on a home, it is important
to have a professional inspection completed before closing.
Q. If I am thinking about buying a
newly-constructed house, why do I need an agent? A. Building a home often requires hours of
research and decision-making. You must first decide what area you want
to build in and which builder you want to work with. After these initial
decisions, you still have many choices of floor plans, building
materials and fixtures. Personalization and freedom of choice are some
of the benefits of building a home, but they can also be very stressful.
An agent will guide you through the entire home building process and
help you along the way should you need it. You’ll still get to make the
choices on your own, but your agent will be there to help, keeping your
best interests in mind. Also, buyer representation comes at no cost to
you.
