Buying A New Home
THE 10 STEPS TO PURCHASING YOUR NEW HOME, WHAT YOU NEED TO HAVE READY, AND HOW WE WILL GUIDE YOU THROUGH THE PROCESS.
meet you HOW NICE TO
Buying a home is an exciting time but in today's current market with low inventory, it can be stressful!
Thank you for choosing to put your trust in us for the process of buying and/or selling your home. Every member of my team is committed to ensuring that ALL of your real estate needs are not just met, but exceeded! I’ve created this book for your convenience and we hope that it will be a valuable resource. While the entire process is outlined for you here, please know that we will be staying in constant contact with you throughout the process.
"Your buying timeline is completely up to you! My job is to walk you through it." "
Jamie Hering
847.345.2668 jamie@realtorjamie.com realtorjamie.com
10 STEPS TO A NEW H O M E
01
FIND THE RIGHT AGENT
Questions to ask an agent while interviewing:
Buying a home is one of the most significant purchases in a lifetime. It is essential to have an experienced agent in your corner, always looking out for your best interest. A buyer agent’s fiduciary responsibility is to represent the buyer and to ensure that their interests are protected. After all, a seller has someone in their corner. A listing agent has an allegiance to the seller. Their goal is to get the seller top dollar for their home. There is incredible value in having someone working for YOUR best interests when buying a home.
How much are all your fees? How long is YOUR contract? Can I cancel the contract early? How long have you been in the real estate business? Can I ask for some references? How many clients are you servicing right now? Before looking at homes, do you first require a client to get a pre- qualification letter from a lender? How do you assist buyers in closing the deal? How can I communicate with you? What are your hours?
1
GETTING YOU IN THE DOOR
COMMITMENT OUR YOU TO
We will narrow down the homes that fit your unique wants and needs get you in the door! Looking at dozens of homes every week, we can help you identify potential problems within a home.
2
HANDLING CHALLENGING CONVERSATIONS
When repairs or changes in price need to made, we will be your guide and handle requesting any repairs or changes in price to the sellers.
3
STAYING ON TOP OF THE PAPERWORK
Buying a home involves many types of documentation. We have the experience and knowledge to navigate real estate contracts. Ensuring that nothing is overlooked, and that you truly understand what a paper means before ever signing on the dotted line. 4 ON YOUR SIDE A buyer’s agent will represent your best interests. With a pulse on the local market and a sound understanding of how various amenities affect the value of a home, we will make sure we submit a competitive offer on the right house for you. 5 NEIGHBORHOOD EXPERT Working daily in neighborhoods with inspectors, contractors, and negotiating with sellers, we have the market knowledge you need to get the best results from your purchase. Understanding the local real estate market can go a long way when it comes time to make an offer on a house.
6
PROBLEM SOLVER
We will work hard to protect all of your interests and take on any issues that may arise throughout the entire process. Hopefully making buying a home a fun and stress-free process.
02
PREPARING YOUR F I N A N C E S
Mortgage lenders recommend you do not stretch yourself beyond buying a home that is more than 3 to 5 times your annual household income. If you are not purchasing a home with cash, you will need a mortgage pre-approval provided by your mortgage lender. A lender will work with you to get a loan that meets your needs. Some buyers are concerned with keeping their monthly payments as low as possible, while others want to make sure that their monthly payments never increase.
A Down Payment is typically between 3.5% & 20% of the purchase price Earnest Money is money you put down to show you’re serious about purchasing a home. It’s also known as a good faith deposit. Closing Costs for the buyer run between 2% & 5% of the loan amount A Home Inspection costs around $500. In order to make your dream of buying a home a reality, you will need to save cash for your down payment, earnest money, closing costs & home inspection.
YOUR HOMEWORK
Study your credit report. Make note of any errors you see and talk to your lender about them.
Compile necessary documents, including pay stubs, bank statements, and past tax returns.
Determine how much of a payment you are comfortable with. Don’t forget you will have taxes and insurance on top of your base mortgage payment!
RESEARCH LENDERS AND GET PRE-APPROVED 03
Credit score and financial documents in hand, you’re ready to start researching options for your home loan.
Take advantage of online aids but listen to us! We have relationships with amazing local lenders and that makes a crucial difference in a competitive market. You can comparison shop from a diverse group of reputable lenders in all 50 states, ranging from small, regional providers to larger, well-known brands such as Citi and Bank of America. You’ll get a personalized quote and can read lender reviews and ratings to help gain insights into which lender is right for you.
Make sure you get that mortgage preapproval letter — it’ll make you a more competitive buyer.
Note: Being pre-approved, unlike being pre-qualified, means you've actually been approved by a lender for a specific loan amount. You will need to provide documented financial information (income, statements, assets, debt & credit reports etc.) to be reviewed & verified by the lender.
YOUR HOMEWORK
Find out if you qualify for a special loan, such as a VA, FHA, or HUD home buying program.
Request quotes from multiple lenders and comparison shop for loans.
Get preapproved for a mortgage and receive your letter
04
S T A R T H O M E S H O P P I N G
Are the surrounding homes well maintained? How much traffic is on the street? Is it conveniently located to schools, shopping, restaurants, & parks? Are there any HOA restrictions that would be problematic? TIPS
Make a list of the things you'll need to
have in the house. Ask yourself how
many bedrooms and bathrooms you'll
need and get an idea of how much
space you desire. How big do you
want the kitchen to be? Do you need
lots of closets and cabinet space? Do
you need a big yard for your kids
and/or pets to play in?
YOUR HOMEWORK
Once you've made a list of your must-
haves, don't forget to think about the
Get a head start by compiling your home wish list.
kind of neighborhood you want, the
types of schools in the area, the length
Spend time in each area, imagining yourself living there.
of your commute to and from work,
and
the
convenience
of
local
Find properties in your price range in your preferred neighborhoods.
shopping. Take into account your
safety concerns as well as how good
Visit open houses and have one of our team members schedule private showings.
the rate of home appreciation is in the
area.
05
MAKE AN O F F E R
Your finances are in order, your ideal neighborhoods identified — next up is finding that perfect property and making a competitive offer. More importantly, one that is accepted over other offers. As more and more people looking to become homeowners, it’s important to prepare yourself for the mortgage process, home search, bidding wars, and what you’ll do next if you do not get the home of your dreams.
Here are our 6 strategies to getting your offer accepted!
02
01
03
EARNEST MONEY
GIFT OF TIME
COMPETITIVE OFFER
Express your willingness to work with the sellers’ timetable to go to closing. We can ask the sellers when their ideal closing date would be so the offer will make them feel like they are winning!
A good rule of thumb, specifically in a seller’s market, is to start strong. To do this, we will assess the property’s market value with a CMA and determine what it's worth in the current market.
This good faith deposit signals how serious a buyer you are. We see anywhere from 1-5% in our area.
04
05
06
LIMIT CONTINGENCIES
MAKE A CONNECTION
ESCALATION CLAUSE
Tell the agent why you love their home. Is it the neighborhood park or access to top-rated schools? Maybe the kitchen size and design is everything you’ve dreamed of? Speak up! She can share this with the
An escalation clause is a way to automatically escalate your bid up to a certain dollar amount. Keep in mind, you’re risking the
Contingencies can add time to the negotiation process. According to the National Association of Realtors, the offer with the fewest contingencies is often the most attractive.
seller seeing the true amount you’ll pay and
maybe paying significantly over the home’s appraised value. Is this home truly worth it?
seller's agent to help establish a rapport.
WHAT HAPPENS AFTER YOU MAKE AN OFFER
Seller can accept or decline the offer.
First Offer Submitted
Declining an offer could mean the seller doesn’t think your offer is close enough to their expectations to further negotiate. A counter-offer is when the seller offers you different terms. If this happens, you can:
Counter
•ACCEPT THE COUNTER OFFER •DECLINE THE COUNTER OFFER
You can negotiate back and forth as many times as needed until you reach an agreement or someone chooses to walk away.
Repeat
Once all parties agree on all the terms, you are officially under contract! Now attorney review begins!
Accepted
Congrats!
ORDER AN INSPECTION 06 A home inspection can help identify deficiencies in a home you’re considering purchasing. If the inspection reveals problems are at work or repairs are needed, you may be able to negotiate with the seller to fix those issues. During the inspection period, we will schedule an inspection with a reputable home inspector to do a thorough investigation of the home. Once this is complete, the inspector will provide us with a list of findings.
N E G O T I A T E FINAL OFFER 07 Here are your options after a home inspection reveals problems: Ask the seller to make the repairs themselves Ask for credits toward your closing costs Ask the seller to reduce the sales price to make up for the repairs Back out of the transaction (if you have an inspection contingency in place) Move forward with the deal In order to negotiate for repairs or credits, start by getting an estimate from a local contractor or construction professional for how much the repairs will cost. If you’re working with a real estate agent, he or she should handle the negotiations on your behalf. Make sure your agent has a copy of the inspection report to use as leverage when working with the listing agent and their sellers.
ATTORNEY REVIEW CLOSED AND APPRAISAL ORDERED 08 When your home is under contract, you can’t move forward with the sale until an appraisal is done on your home. The outcome can affect whether or not you make it to closing and whether the price in the offer is the price you’ll end up with on settlement day. I go the extra mile during this phase of being under contract, meeting the appraiser at your home, and creating an information packet that helps the appraiser have all the information he or she needs for a favorableoutcome. You don’t want the appraised value of your home to come in below the price you’ve negotiated with the buyer, so I have a very specific process for making sure that doesn’t happen!
SCHEDULING MOVE YOUR 09
•Finalize mortgage •Schedule home inspection AFTER SIGNING
•Declutter! Sort through every drawer, closet, cupboard & shelf, removing items you no longer need or like. Donate or sell items that are in good condition •Get copies of medical records and store them with your other important documents •Create an inventory of anything valuable that you plan to move •Get estimates from moving companies
4 WEEKS TO MOVE
•Give 30 days notice if you are currently renting •Schedule movers/moving truck •Buy/find packing materials •Start packing
2 WEEKS TO MOVE
•Get quotes for home insurance •Contact utility companies (water, electric, cable) •Change address: mailing, subscriptions, etc. •Minimize grocery shopping •Keep on packing
1 WEEK TO MOVE
•Obtain a certified check for closing •Complete final walkthrough •Finish packing •Clean •Pack essentials for a few nights in new home •Confirm delivery date with the moving company. Write directions to the new home, along with your cell phone number.
10
C LOS I NG DA Y
• Make sure all appliances are working properly • Run the water in all the faucets and check for any possible leaks • Make sure the heating and air conditioning is working • Flush toilets • Run the garbage disposal and exhaust fans CLOSING TABLE Who will be there: Your attorney, the agents (if allowed), the sellers if they didn't presign their documents, and your loan officer (or on the phone) Closing is when you sign ownership and insurance paperwork and you receive your new home’s keys! Typically, closing takes four to six weeks. During this time, purchase funds are held in escrow, where your money is held safe until the transaction is complete. FINAL WALK THROUGH We will do a final walk through the home within 24 hours of closing to check the property’s condition. This final inspection takes about an hour. We will make sure any repair work that the seller agreed to make has been done. We will be sure to:
BRING TO CLOSING • Government-issued photo ID •Proof of wire, insurance, and a smile!
RECEIVE YOUR KEYS Congratulations! It was a lot of hard work but you are now officially home owners!! Time to throw a party and get to know your new neighbors!
WHAT TO EXPECT WHEN WORKING WITH US
Do our very best to ensure exceptional service to our clients. We strive for excellence.
SERVICE
Act as fiduciary representatives of the Client, keeping all personal information confidential. Suggest financing options and refer the Client to competent lenders.
CONFIDENTIALITY
Assess the market value of homes, research comparable sales. Strategize, prepare and negotiate all offers and contract documents providing the maximum investment value for the Client.
RESEARCH
COMMUNICATION Communicate at a high level. Respond to all inquiries in a timely fashion. Welcome to the Family!
t e s t i m o n y Jamie and her entire team go above and beyond for their clients. We have had the privilege of working with her both personally and professionally for our clients and I cannot say enough positive things about her. they are always quick to respond, knows the market like the back of their hand, has excellent recommendations for staging and marketing, and most importantly, they get houses SOLD.
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