2018 Buyer_Guide

Buyer’s Guide

Why use a Realtor when buying a home:

A basic rule in real estate is that all properties are unique. No two properties --
even two identical models on the same street -- are precisely and exactly alike.
Homes differ and so do contract terms, financing options, inspection requirements
and closing costs. Also, no two transactions are alike. In this maze of forms,
financing, inspections, marketing, pricing and negotiating, it makes sense to work
with professionals who know the community and process much more.

Millions of new and existing homes are sold each year. There's no shortage of
housing options, but with so many choices the challenge becomes finding the
property which best meets your needs. The housing market is complicated because
the stock of homes for sale is always in flux. If it were possible to have a
complete list of every home for sale at this very moment in a given community, such
a list would become obsolete within seconds as new homes become available and
properties now for sale are put under contract. In effect, buyers are looking at a
moving target in a marketplace that is never static. Because of this, it is important
to know as much as possible about the choices in preferred markets, and the way
to do that is by working closely with a local Realtor who has a good lay of the land.

What to expect from your Realtor:

Once you select a Realtor you will want to establish a proper business relationship.
You likely know that some Realtors represent sellers while others represent
buyers. Each Realtor will explain the options available, describe how he or she
typically works with individuals and provide you with complete agency disclosures
(the ins and outs of your relationship with the agent) as required in our state.

Once hired for the job, the Realtor will provide you with information detailing
current market conditions, financing options and negotiating issues that might
apply to a given situation. Remember: Because market conditions can change and
the fact that strategies that apply in one negotiation may be inappropriate in
another, this information should not be set in stone. During your time in the
marketplace Realtors will keep you updated and alert you to each step in the

transaction process.

What is Pre-approval:

"Pre-approval" means you have met with a loan officer, your credit files have been
reviewed and the loan officer believes you can readily qualify for a given loan
amount with one or more specific mortgage programs. Based on this information,
the lender will provide a pre approval letter, which shows your borrowing power.
You can visit as many lenders as you like and get several pre-approvals, but keep in
mind that each one carries with it a new credit check, which will show up on future
credit reports. Although not a final loan commitment, the pre approval letter can
be shown to listing brokers when bidding on a home. It demonstrates your financial
strength and shows that you have the ability to go through with a purchase. This
information is important to owners since they do not want to accept an offer that
is likely to fail because financing cannot be obtained.

Why is Pre-approval needed:

The idea is to get the loan that's right for you -- the mortgage with the lowest
cost and best terms. Realtors routinely suggest that consumers start the
mortgage process well before bidding on a home. By meeting with lenders and
looking at loan options, you will find which programs best meet your needs and how
much you can afford. Pre approvals are recommended for another reason: Purchase
forms often require buyers to apply for financing within a given time period, in
many cases, three to 5 days. By meeting with loan officers in advance and
identifying mortgage programs, it won't be necessary to quickly find a lender,
check credit, and rush into a financing decision that may not be the best option.

After you’ve been pre-approved for a certain amount make sure to be conservative
enough so that you can move into your new home and truly enjoy it without worry.
Remember there will be moving expenses involved and probably upgrades that you
will want to make such as new paint colors, new kitchen and bath accessories or
other purchases that will help personalize your new house. Your new home may also

be in a neighborhood that has Home Owner Association fees. These will add to
your monthly financial obligations.

How to get pre-approval:

Real estate financing is available from numerous sources. Your Realtor may
suggest one or more lenders with a history of offering competitive programs and
delivering promised rates and terms. The loan officer will carefully review your
financial situation, including your credit report and other information. The lender
will then suggest programs which most-closely meet your needs. For instance, a
first-time buyer may qualify for state-backed mortgage programs with little money
down and low interest rates, while a repeat purchaser (someone who has bought a
home before) with more equity (money invested in the home) might want to get a
15-year loan and the lower overall interest costs it represents. Typically, first-
time buyers opt for the traditional 30-year loan, with either a floating interest
rate or a fixed rate of interest over the life of the loan.

What are you looking for:

A home is more than just a collection of bedrooms and bathrooms. Several
properties -- each with four bedrooms, three baths, and the same price -- may well
represent radically different designs, commuting distances, lot sizes, tax costs,
interior dimensions, and exterior finishes. Each of us is different and so it's
important to list the features and benefits you want in a home. Consider such
things as pricing, location, size, amenities (extras such as a pool or extra-large
kitchen) and design (one floor or two, colonial or modern, etc.). Next, it's
important to consider your priorities. If you can't get a home at your price with all
the features you want, then what features are most important? For instance,
would you trade fewer bedrooms for a larger kitchen? A longer commute for a
bigger lot and lower cost? Lastly, consider your needs in several years. If you'll
need a larger home, maybe now is the time to buy a bigger house rather than
moving or expanding in the future. If you expect your income to increase, perhaps
you should consider a more expensive home financed with a loan program where
monthly payments increase in the future. It’s important to look at your needs vs.
your wants.

Some buyers like to search REALTOR.com by looking at listings on the basis of
location or price; others prefer to have local REALTORS suggest properties; and
many buyers prefer both approaches.

Regardless of your choice, it's important to target your search. By using basic
measures such as general location and affordability, you can refine your search and
focus on homes that offer the most desirable features. As a guide, you should
maintain a file with information on each of the homes you like. You can print out
listing pages from REALTOR.com and then make notes for each one -- what you
like, questions, etc.

Location, Location, Location
They say that the 3 most important things to think about when buying are home
are location, location, location. You can live with almost any imperfection in a home
if you love the neighborhood and your neighbors. You can change almost everything
else. But, once bought, you cannot change your home's location. When you go
house hunting, consider any potential home's proximity to your work, the charm of
the neighborhood, how the home is situated on the lot, ease of access, noise from
neighbors, traffic, or pets, and access to parks, shopping, schools, and public
transportation.

Situation Factors
Beyond location, look at the particular site of the home. If the home is on a hill
does it have a view, a walkout basement, or lots of stairs to climb? Do neighbors'
windows look directly into the home? Is the yard suitable for kids, pets,
gardening, or other uses? Is access to the property safe regarding driveway
elevation, stairs up to (or down to) the front door?

Check Out the Neighborhood
Be sure the neighborhood, and not just the house, meets your expectations. They
say that you should own the smallest home in the nicest neighborhood that you can
afford. You'll have a great view! Drive around on week days and weekends, during
the day and in the evening. Are homes in the neighborhood consistent in size and
features? Do the neighbors keep the yards clean and tidy or are there old cars
and trash around? Is the neighborhood safe enough for people to walk, run, or
bike and are there children playing in the yards?

Does the neighborhood have a Home Owners Association? If so – be sure to get a
copy of all of the rules up front. If you have pets and want to build a privacy fence
– will the HOA allow it to be built? What do your monthly fees cover and who runs
the association?

Consider a Home's Curb Appeal
Your home should reflect your lifestyle. Do you live a laid-back life? Then you

might not want a formal Victorian or Tudor style home. Something simpler and
more contemporary might be in order. Look at the exterior features. A brick
home is easier to maintain, but permanent. Is the roof in good condition? Is the
landscaping attractive and are the sidewalks leading to the home safe? How do the
neighbors keep up their homes?

Size and Floor Plan
You may be thinking about buying your dream home. But is your dream home
impractical? Do you really need 4 bedrooms and 4 baths when you live alone? A
large home can give you the extra space you've always wanted for a home office or
crafts or art projects. But you'll pay higher heating bills and have higher taxes.
It will take more furniture to furnish and money to decorate. Think about how the
new home space will be used and whether it will fit your lifestyle now and in the
future.

Bedrooms and Bathrooms
Decide how many bedrooms and bathrooms you really need, and only look at homes
that meet your criteria. It would be a shame to fall in love with a cozy, charming
cottage that just isn't big enough. An extra bedroom is always a plus, as it can be
used for a home office, craft studio, or guest room. If you think you'll be adding
more room later, be sure to consult an architect who can advise you on space
planning, lot usage and city regulations.

The Kitchen
If the kitchen is the heart of your home, don't settle for a home with a kitchen
that just won't work. You can always remodel, but it's very costly. Can you just
replace cabinet faces and countertops? Will an inexpensive makeover be
sufficient? Don't worry about appliances, as they can usually be easily replaced.

Closets and Storage
Older homes tend to have little closets and not a lot of storage space. If you have
lots of sports equipment, craft supplies, out-of-season clothes, and holiday
decorations, be sure you know where it will go in your new home. Newer homes
tend to have big closets and lots of storage. You can always add storage space, but
you might have to sacrifice living space in your rooms.

Windows and Lighting
Do you love a bright sunny room or do you love privacy? Look at a home with light

and sunshine in mind. Look at the locations of electrical outlets and fixtures. Will
they accommodate your lighting needs? Is there recessed lighting in the kitchen,
cove lighting in the family room and a lovely chandelier in the dining room? If not,
you can add them later, but it's nice to have it in place when you move in.

Finishing Touches
Sometimes the simplest home looks spectacular because of the installation of
moldings, hardware and a fireplace. If these elements are important to you, look
for them while house hunting or be ready to add them after you move in. It’s
doubtful that any house you choose will be the perfect match to your taste but
many things can be changed or added inexpensively such as paint colors, carpeting,
decks or patios and landscaping. These things will add your personal touch to your
new home.

Is it THE house?
A house is shelter, but a home is far more. It's where you live, relax, entertain
friends, raise families, and work. A home is where you spend much of your life, and
so choosing a house is an enormous decision that requires a lot of give and take on
your priorities. Only you can make the final decision but your Realtor can help
guide you through the process.

The Offer

Once you’ve found the house that you want to purchase your Realtor will be most
helpful in preparing the offer. Is there competition for the house from other
potential buyers or has the house been on the market for a while looking for a
buyer? Your Realtor will have this information and be able to help you formulate a
fair bid. Your Realtor will also be able to insert other negotiable items into your
offer that are important to you such as appliances or move dates. Negotiating
takes tact and experience - your Realtor will act on your behalf taking the stress
and emotion out of the process.

Randy Worrell
RE/MAX Legends Group
317-819-3330 Direct
317-590-5709 Cell

Over 33 Years Of Trusted Real Estate Experience On Your Side!