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What is it you really want? What can you really afford? What is the timeframe for you to make
your move? How will you get the
most for your money?
What are the most important considerations for your purchase of a
home? School
Districts might be a factor.
Will you be buying a home with cash or do you need to apply for a loan
from your bank or a mortgage company?
Most people need to arrange for a loan in order to purchase a home. Do you have money saved for a down
payment or for closing costs? To
answer most of these questions and to lead you to the resources to get things
started you need to enlist the aid of a Buyer’s Agent.
A Buyer’s Agent will work for you to help guide you
through the process of buying a home.
The agent whose phone number is on the sign represents the Seller. The Seller’s agent is working for the
Seller’s best interest and not that of the potential Buyer.
If you are wondering if an agent can represent both
parties in a transaction equally and fairly, it depends on the agent and the
wishes of the two parties. If it
should happen that the agent would be representing both parties, then both
parties must agree to an intermediary agreement where each party will be served
equally and honestly. All parties
must agree in writing by signing an Intermediary Relationship Agreement.
FIRST THINGS FIRST …
Finding the right home is best accomplished by selecting
an agent to help you search the Multiple Listing Service (MLS) provided by the
San Antonio Board of Realtors. This
is the most current data available concerning real estate for sale and contains
detailed information about that property.
Make an appointment to come to the office or, if you have Internet access
at home, we can come to you to search for the property that meets your needs and
budget. Price and location are the
most important considerations, and then size, style and features such as
flooring and room dimensions. Ask
questions about taxes and financing while searching the MLS. Learn more about the transaction,
contracts, addendums and timing.
Your real estate counselor will provide the information you need to make
an informed decision.
FINANCING BASICS
It is best to find out your financing options before you
start your home search. A lender
will pre-qualify you for the loan you can afford after considering your debt to
income ratio. Being pre-qualified
for a loan determines how much house you can afford to buy. It also allows you to move swiftly when
you find the right house, especially when you aren’t the only interested
buyer. Mortgage rates vary, with
the market and with individual lenders.
It is beneficial to shop different lenders for the type of loan and rate
for which you will qualify. Even
half a percent can make a difference in how much you pay over the life of the
loan. For instance…a loan for
$100,000.00 for 30 years at 8% vs. 7.5% is about $35.00 per month of
difference. Over 30 years it totals
$12,600.00. If you find the home
that want, you must weigh all the options and the advantages of the loan product
you select. Be prepared to make a
concession or two when you find a home that meets a majority of your search
criteria.
HOW MUCH SHOULD YOU
OFFER?
A home is worth what someone will pay for it. Everything else is an estimate of
value. A comparative market
analysis is a real estate broker’s or agent’s informal estimate of a home’s
market value, based on sales of comparable homes in a neighborhood. Most agents will give you a comparative
market analysis for free. You can
do your own cost comparison by looking up recent sales of comparable properties
in public records. These records
are available at local recorder or assessor offices. Through private real estate
companies or the Internet. The list
price is a Seller’s advertised price, a figure that usually is only a rough
estimate of what the seller wants to get.
Sellers can price high, low or close to what they want for their
property. To judge whether the list
price is a fair one, be fore to consult current or recent comparable sales
prices in the area.
SHOULD I GET AN
INSPECTION?
When buying a pre-owned home, it is prudent to get the
home inspected by a professional licensed home inspector. The inspection reveals the need for
repairs that can be negotiated between the buyer and the seller during the
option period before the contract to purchase the home is finalized. You will know the actual condition of
the home, which helps you to make a sound buying decision, and this will reduce
the stress involved in buying. The
inspector will examine the structure including the foundation and roof, the
electrical wiring and the appliances in the home. Although they also test the plumbing for
slow running drains and leaky faucets, if you want to test the plumbing that
exists within the foundation, you will have to have that tested by a master
plumber separately. This is an
additional expense, but it can save you money in the long
run.
BUYER’S TIPS …
- Is the Title to the property clear? Who can insure that there are no liens on
the property or outside interests?
- Get acquainted with your lender and meet
with them to get answers to any questions about the loan process.
- Find out all you can about the loan options
available to you and whether you will have taxes and insurance escrowed or
whether you will be responsible for paying them directly to the proper
agency.
- Who will pay for the appraisal? What if the property does not appraise
for the loan amount?
- Will you need a survey? Who provides it? How much does it cost? Who must review it?
- Is a termite inspection required? By whom? Do they all charge the same for this
service?
- Has the Home Inspection report been
completed? By whom? Do all Home Inspectors charge the
same?
- What will be the costs for closing the
deal? Who will handle it?
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