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Buying a Home?
It's probably the biggest investment you'll ever
make with long-term financial ramifications. It calls for many informed decisions
and good advice from a real estate professional. Members of the
Manatee Association of
REALTORS® (MAR) are real estate professionals who belong to the
National Association of
REALTORS® and subscribe to its strict Code of Ethics. Not all real
estate brokers and agents are REALTORS®. To make sure you're working with one,
look for the federally registered membership mark REALTOR®.
When buying a home, here's what you can learn from a
REALTOR®'s knowledge and skill:
l
A REALTOR® can
help you determine how much home you can actually
afford. Often, a REALTOR® can suggest additional
ways to accrue the down payment and explain alternative financing
methods.
l A REALTOR® can
help you determine the home best suited to your
family's needs - size, style, features, location,
accessibility to schools,
transportation, shopping, etc.
l A REALTOR® has
access to thousands of listings available home, and
can match the features of currently listed homes
with your needs and
within your price range, saving you time and
frustration on unsuitable
homes.
l A REALTOR® can
offer suggestions on how, with a few simple changes,
a home could be made more suitable for you and
improve its utility and
value.
l A REALTOR® can
supply information on the real estate values, taxes,
utility costs, municipal services and facilities,
and may be aware of
proposed zoning changes that could affect your
decision to buy.
l A REALTOR® has
no emotional ties to the homes he or she shows, can
be objective about them, and can point out
advantages and disadvantages
while answering your questions.
l A REALTOR®
usually knows his or her local money market and can tell
you about financing. A REALTOR® can also tell you
what personal and
financial data to bring with you when applying for a
loan.
l A REALTOR® can
help you better understand the closing process by
explaining it all before you get to the closing
table.
Buying
The process of buying a home or investing generally
starts with determining your buying power; that is, your financial reserves,
plus your borrowing capacity. If you give a real estate agent some basic
information about your available savings, income and current debt, they can
refer you to the lenders best qualified to help you. Most lenders -- banks and
mortgage companies -- offer limited choices.
Finding
Once you know how much you can and want to invest,
the next stop is to find the properties that most nearly fit your needs. This
is the time to choose a real estate licensee. When picking a real estate agent
look for one who is also a REALTOR®. A REALTOR® is a member of the National
Association of REALTORS®, and all members agree to abide by a
17-article Code of Ethics. A REALTOR® has many resources to assist you in that
search. Sometimes the property that you are seeking is available buy not
actively advertised in the market, and it will take some investigation by your
agent to find all available properties.
Selecting
Your job is to make the final selection of the right
property for you. This is when excitement and emotion run high. Your real
estate agent can assist you in the selection process by providing objective
information about each property. Agents who are REALTORS® have access to a variety of
informational resources. REALTORS® can provide local community
information on utilities, zoning, schools, etc. There are two things you'll
want to know. First, will the property provide the environment I want for a home
or investment? Second, will the property have resale value when I am ready to
sell?
Negotiating
There are a myriad of negotiation factors,
including, but not limited to price, financing, terms, data of possession, and often the
inclusion or exclusion of repairs and furnishings or equipment. The purchase
agreement should also provide a period of time for you to complete
appropriate inspections and investigations of the property before you are bound
to complete the purchase. Your agent can advise you as to which investigations
and inspections are recommended or required.
Due Diligence
With a negotiated agreement in hand, it is time to
complete the evaluation of the property. Depending on the area and property, this could
include inspections for termites, dry rot, asbestos, faulty structure, roof condition,
septic tank and well tests, just to name a few. Your agent can assist you in finding
qualified responsible professionals to do most of these investigations and
provide you with written reports. You will also want to see a preliminary
report on the title of the property. Title indicates ownership of property and
can be mired in confusing status of past owners or right of access. The title
to most properties will have some limitations; for example, easements (access
rights ) for utilities. Your agent, title company, or attorney can help you
resolve issues that might cause problems at a later date.
Financing
As soon as you are reasonably sure the property is
right for you, the process of obtaining financing begins. Your agent can help you
understand different financing options and in identifying qualified
lenders.
Closing or Settlement
Finally, there is the closing, or settlement, as it
is know in different part of the country. Every area has its own unique customs. In
some areas, the title or escrow company will handle this process. In other
parts of the country, and attorney does it all. Again, your real estate agent
can guide you through this process and make sure everything flows together smoothly.
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