SUCCESSFUL HOMEBUYING HANDBOOK A Guide For Your Successful Home Purchase
INTRODUCTION Buying a home is one of the most important purchases most of us make during our lifetimes. To make certain you are adequately informed and aggressively represented, we recommend you employ an Exclusive Buyer s Agent to act on your behalf and negotiate in your best interest thereby assuring you the best possible homebuying experience. This booklet summarizes the benefits of homeownership, the homebuying process and the services a buyer s agent can offer you. While, traditionally, homebuyers have trusted a seller s agent to treat them fairly and with care, today s competitive marketplace demands a more aggressive homebuying approach. As your Exclusive Buyer s Agent, our sole mission will be to make certain that when you're ready, willing and able to buy, you are also informed and empowered to make the best possible decision. Your Buyer s Agent- The Gardner Home Team
THE BENEFITS OF HOME OWNERSHIP MORTGAGE INTEREST IS TAX DEDUCTIBLE PROPERTY TAXES ARE TAX DEDUCTIBLE HISTORICALLY, HOMES OFFER OUTSTANDING APPRECIATION CAPITAL GAINS PRINCIPAL REDUCTION EQUITY GROWTH PERSONAL EXPRESSION PRIDE OF OWNERSHIP 1 Buyer Counseling Interview
TRADITIONAL SELLER S REPRESENTATION For many years both the sales associate who listed the property for sale and the associate who worked with a buyer represented only the seller in the transaction. They owed their fiduciary duties their loyalty, disclosure, and accountability only to the seller, and they were responsible to tell the seller all important information which they knew and which might affect the seller s decision concerning the sale of the property. Sellers, therefore, have traditionally benefited from professional representation, while buyers have been left to their own resources. In some cases, buyers even assumed that the sales associates showing them properties were acting on their behalf rather than representing the seller. Even when sales associates represent the seller, they are legally and ethically obligated to treat buyers honestly and fairly, with sound business practices. They do not, however, represent the best interests of the homebuyer. When you wish to have a professional REALTOR advocate your best interests throughout your homefinding and home purchase, you must secure the services of a buyer s agent to represent you.
CHARACTERISTICS OF A BUYER S AGENT LOYALTY Your real estate agent acts in your best interests OBEDIENCE Your real estate agent must follow all your lawful instructions DISCLOSURE OF MATERIAL FACTS AND MATERIAL DEFECTS Your agent must disclose to you all material facts and defects of the property. Examples include but are not limited to: o o o o o o Relationships between the agents and other parties Existence of other offers or counter-offers Status of earnest money deposit Seller s ability or lack of ability to close the transaction Property s market value Impact of important contract provisions CONFIDENTIALITY The real estate agent must keep your confidences. Any information which you reveal to the agent about your motivation to purchase, your time requirements, or any other information which would put the seller at an advantage over you must remain confidential between you and your buyer agent. However, our state laws require your buyer agent to disclose to the seller or the seller s agent any material facts about your ability to complete the transaction. ACCOUNTING Reporting where any monies placed in the hands of the broker are kept Careful administration of any monies or property placed in the care of the agent REASONABLE SKILL AND CARE Negotiation for a reasonable purchase price Affirmatively discovering material facts and disclosing them to the buyer Investigating, when possible, the important information related to the purchase decision and process
TRANSACTION BROKERAGE & DUAL AGENCY? In the event that you desire to see or purchase a property which we as your agent are marketing for one of our seller-clients, we have a relationship with both of you. It is impossible for us to fully represent both you and the seller. Therefore, both relationships must change. If the seller s property is located in Kansas, we become a Transaction Broker, working with both you and the seller to facilitate the sale but without representing either. In Oklahoma, we become either a Disclosed Dual Agent, representing both you and the seller in a limited fashion or a Transaction Broker. In either case, we are commited to protect your confidences. Examples of these confidences include (1) your motivation to buy, (2) the highest price you will pay, (3) any previous offers or counter offers you have made, and (4) financing terms other than those you are offering. Both you and the seller will receive fair and honest treatment and we will continue to provide the information necessary for you to make sound decisions throughout your home purchase, including preparing a comparative market analysis.
EXCLUSIVE BUYER AGENCY SERVICES & INFORMATION As a buyer s agent, we will provide you: An organized, efficient home search Insight into market conditions Financing information and guidance Knowledge of local neighborhoods Suggestions of appropriate homes to consider Negotiation skills to represent your best interests Management of the processing of your purchase Coordination of the closing and possession An exclusive relationship will allow us to act as a team to satisfy your homebuying needs. If you share with us, in detail, the kind of home you want, where you would like to locate, and the special wants and needs of your family, we will provide the real estate knowledge and expertise to make certain your home search is successful.
MORTGAGE LOAN PRE-APPROVAL PROGRAMS Many buyers apply for their new loan and obtain written loan approval before they search for their next home. Obtaining loan approval prior to beginning your home search saves time, prevents frustration, and may even facilitate a better deal in your negotiations! Here are the benefits: You look at the right homes A seller may be more flexible when negotiating with an approved buyer As an Exclusive Buyer s Agent, I can assist you to negotiate from a position of strength, your posture being the same as CASH You can close your home purchase more quickly You minimize the worry of whether or not you qualify for a mortgage loan
NEW HOMES We can work with almost any builder to secure all the information you need to make an informed decision. We will need to accompany you to the property on the initial visit with the builder s representative to be able to represent you throughout your purchase. By letting us help you with builders, you receive all the services offered in this presentation and those offered by the builder as well. We will utilize my knowledge and skills to make your new home buying experience a positive one! Don t worry about our fee, because we will receive our commission from the Realtor fee paid by the builder. FOR SALE BY OWNER As a member of the Multiple Listing Service, we can show you any property, no matter what company has listed it. When you should see an ad in the paper or a sign in a yard, call us to find out the information. If you want to see it, we will show it to you. MULTIPLE LISTING SERVICE MEMBER Even when you see a For Sale By Owner sign, be sure to call us. With all the inspections, disclosures, forms, closing documents and, of course, contract negotiations, you will need a professional to represent you and we will negotiate our fee with the For Sale By Owner. An arms-length negotiation benefits you in more than sale price!
THE PURCHASE AGREEMENT As your Exclusive Buyer s Agent, we will negotiate to obtain for you the best possible purchase agreement. Some of the issues we will negotiate are: Price We will guide you through offers and counter offers to obtain the most favorable price possible for you. Remember, when the listing price of a property represents fair market value, you may choose to pay full price to secure the home of your choice. Terms The type and source of financing you select will affect your monthly payments and, subsequently, your total investment. We will make you aware of the various financing options available to you. Property Inspections Your purchase agreement will include provisions for various property inspections. We will assist you to effectively utilize these provisions to safeguard your investment. Contingencies We may use contingencies as a means to secure an agreement that meets your needs but allows the flexibility to resolve outstanding uncertainties, such as selling your present home. However, your best purchase will occur when your present home is contracted by a qualified buyer before you purchase your next property. Closing Various provisions for closing can positively or negatively effect the outcome of your purchase. We will strive to secure a closing date and conditions to your advantage. Possession Once the sale is closed, most buyers want quick possession. Unless your needs are to the contrary, we will negotiate a quick possession date.
HOME WARRANTY PROGRAMS As an additional benefit, some sellers provide a Home Protection Plan for the buyer. These warranty programs typically insure the property s working components for one year. Generally, your only expenditure will be a small deductible fee paid at the time of a repair or replacement claim. Most programs cover the following items: Central heating system Electric central air system Interior plumbing Built-in appliances Electric pool equipment If the home you choose does not have a Home Protection Plan, you can acquire the coverage yourself.
DO S & DON TS When acting as an Exclusive Buyer s Agent, we make a variety of suggestions and recommendations to my clients. Some of these are... DO S Don ts Do secure written approval for a home loan so you can negotiate as a cash buyer. Do put your present home on the market so you can make a strong offer for the home you want, if you must sell in order to buy. Do look at enough homes to make certain you are knowledgeable about the best available homes to meet your needs, but don t feel the need to look at more homes if one of the first you see matches your wants, needs, and price. Do compare any home you are considering with other similar homes that have sold recently. Do hire professionals to perform all inspections, surveys, etc. A small fee today can prevent a large bill later! Do ask your Exclusive Buyer s Agent to explain and research any detail of the homebuying process you do not understand or about which you want additional information. Do give your Exclusive Buyer s Agent s card to the host agent at any open house you may visit without your agent. Do fully communicate your wants and needs to your Exclusive Buyer s Agent, so he or she can best represent your interests. Do drive through neighborhoods you are considering at various times of day to get the feel of the area. Don t tell sellers or seller s agents your time frame for moving, your maximum purchase price, down payment amount or financing needs. Potect your own confidences! Don t give your name and number to a For Sale By Owner. Don t lose the opportunity to be represented by offering information. Don t rely on the verbal representations of anyone. Utilize professionals to insure that you make educated and informed decisions. Don t sign any document that you do not fully understand. Secure professional or legal advice when necessary. Don t enter into any substantial discussion about purchasing a home if your Exclusive Buyer s Agent is not present to protect your position. Don t make a ridiculous offer, anticipating that such an offer will make a better deal. If you are serious about buying a particular home, make a serious offer. Sellers may reject further negotiation from a buyer who has alienated them with a low offer. Don t feel embarrassed about opening closets, cabinets, or drawers in any home you are considering purchasing. Don t consider negotiations finished until every issue is resolved...both major and minor considerations..and confirmed in writing!
REFERENCES We will be happy to provide you with a list of our previous buyer clients. Feel free to ask them to share with you their thoughts and insights into the homebuying process. THOUGHTS & QUESTIONS