Exact Realty LLC; Seattle Area Real Estate

Choosing a Real Estate Representative

The first in a four part series: Choosing a Real Estate Representative,

From the benefits of Buyer Agency to the differences between a licensed agent & a REALTOR:

Part I of IV

Benefits of Buyer Agency

Buyers often make the mistake of purchasing the property through the listing agent, who typically represents the seller.  Below are many reasons why you should use an agent who represents YOU in the buying process:

• Loyalty

The real estate agent must act in the best interest of the buyer.

• Obedience

The Agent must follow the lawful instructions of the principal (buyer).

• Disclosure of all material facts

Examples, but not limited to:

• Relationships between agent and other parties.
• Existence of other offers.
• Status of earnest money.
• Seller's financial condition.
• Property's true worth.
• Commission split with other brokers.
• Legal effects of important contract provisions.

Next, the Benefits of Buyer Agency, Continued.

Homebuyer Education - Important Public Service, unbiased, for CONSUMERS.

Washingon State Housing Finance Commission-Sponsored Homebuyer Education

 

Date:          Saturday May 19

Time:         12:20-5:30 pm

Cost:          FREE

Location:    11255 Kirkland Way, Suite #200, Kirkland

                  FREE PARKING

RSVP:         sandy@exactrealtywa.com or 206-369-6240

 What YOU will learn:

• Steps to Homeownership
• Owning vs renting
• How Much Can You Afford?
• Selecting a Loan Program
• Down payment and Closing Costs
• How to Shop for a Lender & Real Estate Professional –
• Selecting a Home
• The Importance of a Home Inspection
• House Key Program
• Loan Closing
• Home Maintenance
• Consumer Protection Resources
• Community Resources for Further Counseling or Other Assistance.
• Fair Housing/Predatory Lending

Please bring a sack lunch and beverage. Refreshments will be provided. Minimum number of attendees to conduct class. Reservations required

Part III of III; the ‘Nuts & Bolts’ of choosing a home

the last in a three part series

Act Decisively When You Find the Right Home

Before you begin the home buying process, resolve to act promptly when you do find the right house. Every REALTOR® has stories to tell about a couple who looked far and wide for their dream home, finally found it, and then said, "We always promised my Dad we'd sleep on it, so we'll make an offer tomorrow." Many times the story had a sad ending - someone else came in that evening with an offer that was accepted.

Resolve that you will act decisively when you find the house that’s clearly right for you. This is particularly important after a long search or if the house is newly listed and/or underpriced.

This is ESPECIALLY true in the market of Spring 2012, as there are listings receiving multiple offers everywhere!

Part II of III; the ‘Nuts & Bolts’ of choosing a home

the second in a three part series

Part II

Decide What Age and Condition of Home You Want to Purchase

Weigh your needs, budget and personal tastes in deciding whether you want to buy a newly constructed home, an older home or a "fixer-upper" that requires some work.

Consider Resale Potential

As you look at homes, you may want to keep in mind these resale considerations.

• One-bedroom condos are more difficult to resell than two-bedroom condos.
• Two-bedroom/one-bath single houses generally have less appeal than houses with three or more bedrooms, and therefore have less appreciation potential.
• Homes with "curb appeal," i.e., well-maintained, attractive and with a charming appearance from the street, are the easiest to resell.
• The most expensive houses on the street, or ones with anything unusual or unique are not suited for resale. The best investment potential is traditionally found in a less expensive, more moderately sized home.

Use a Features Wish List to Keep Your Search Focused

Make a features wish list to clarify which features are most and least important to you when looking for a home. Using this features wish list will keep your house hunt focused and effective.

Use a Home Comparison Chart to Keep Your Observations Organized

While house hunting, it's a good idea to make notes about what you see because viewing several houses at a time can be confusing. Use a home comparison chart to help you keep track of your search, organize your thoughts and record your impressions.

Part I of III; the ‘Nuts & Bolts’ of choosing a home

the first in a three part series

How to Choose a Home

Here are some tips to help determine which house is best for you.

Once you've settled on a couple of preferred neighborhoods for your home search, it's time to pick out a few homes to view. Having a house features “wish list” keeps you focused on which features are most important to you.

When narrowing down your home search, consider the following:

• know what types of home you want to buy
• determine what age and condition of the house you want to buy
• consider resale potential
• use a features wish list to keep focused
• use a home search comparison chart to keep organized
• act decisively when you find the right home

Determine What Type of Home You Want to Buy

There are several forms of home ownership: single-family homes, multiple-family homes, condominiums and co-ops.

Single-family homes: One home per lot.

Condominiums: With a condo, you own "from the walls inward." You also own a certain percentage of the "common elements" - staircases, sidewalks, roofs, etc. Monthly charges pay your share of taxes and insurance on those elements, as well as repairs and maintenance. A homeowner’s association administers the development.

cont'd next post, stay tuned...

Homebuyer Education - Important Public Service, unbiased, for CONSUMERS.

Washingon State Housing Finance Commission-Sponsored Homebuyer Education

 

Date:          Saturday April 28

Time:          9am-2pm

Cost:           FREE

Location:     2312 Eastlake Avenue East, Seattle, 98102

                  FREE PARKING

RSVP:          sandy@exactrealtywa.com or 206-369-6240

 What YOU will learn:

• Steps to Homeownership
• Owning vs renting
• How Much Can You Afford?
• Selecting a Loan Program
• Down payment and Closing Costs
• How to Shop for a Lender & Real Estate Professional –
• Selecting a Home
• The Importance of a Home Inspection
• House Key Program
• Loan Closing
• Home Maintenance
• Consumer Protection Resources
• Community Resources for Further Counseling or Other Assistance.
• Fair Housing/Predatory Lending

Please bring a sack lunch and beverage. Refreshments will be provided. Minimum number of attendees to conduct class. Reservations required

Part III of III; the ‘Nuts & Bolts’ of the homebuying process

the third in a three part series

More parts of the process:

Loan Process:  Continue to provide the lender with all the requested documents.  It’s not unusual to have requests for documentation at the last minute.  The underwriters are notorious for this!

Homeowner’ Insurance & Utilities:  Call your insurance agent to order homeowners’ insurance.  Call all utility companies to have accounts put in your name, as of the Closing Date.  Submit change of address form to the post office.  Consider having locks re-keyed after taking possession.

Loan Approval (within 30 days):  After loan approval is received, your lender prepares the official closing documents.  There may be outstanding “conditions” on your loan before actual closing can happen.  The Lender will work closely with you until all conditions are met.

Escrow:  A few days before closing, the Escrow Company calls to schedule an appointment for you to sign the Closing Documents.  (The sellers sign at a different time.)  The Escrow Officer tells you the exact amount of the down payment and closing costs to bring with you.  Check with the Escrow Officer to find out how they’d like the funds delivered.

Closing/Recording:  The sale records with the County.

You move in and achieve the American dream…….

YOU’RE A NEW HOME OWNER!  Congratulations!

Part II of III; the 'Nuts & Bolts' of the homebuying process

the second in a three part series

NOW YOU’VE FOUND YOUR HOME…

What happens next?

The Offer:  Your Realtor helps prepare your offer and then presents it to the sellers (you do not attend in person).  Your Realtor is your advocate.  She represents YOUR best interest, not the sellers’, negotiating on your behalf.

Counter Offer:  The sellers may counter your offer.  Your Realtor discusses the counter offer with you and you make the final decision.  Contracts are finalized.

Loan Application:  Meet with your chosen lender to complete the formal mortgage application.  Provide a copy of the finalized contract to your lender.

Home Inspection:  Schedule the structural inspections with a licensed Home Inspector.  You should arrange to be present.  The inspector will meticulously inspect every structural aspect, system, nook and cranny of the property, and discuss everything with you.  You will be asked to pay the inspector at the time of inspection.  A written report is usually received the next day.

Lift Inspection Contingency:  After the inspection, you determine if there are any major repairs you want to request the seller to make.  Your Realtor again negotiates on your behalf.

Title Insurance:  The preliminary Title Report is provided for your review.  It arrives in the mail a few days after you make loan application.

Lender Appraisal:  The lender’s appraiser inspects the property for value.  The appraiser may require repairs even though we have already finished negotiating the inspection.  All lender work orders must be done.  Your Realtor negotiates with the seller on your behalf.

Part I of III; the 'Nuts & Bolts' of the homebuying process

You want to buy a home, what now?!

Initial Meeting:  Sit down with Your Realtor and share what you are looking for in a home.

Prequalification:  Call your lender to prequalify for a mortgage to determine your budget.  This requires only 10 minutes and is at no cost or obligation on your part.

Lender Choice/Preapproval:  Comparing the good faith estimates from multiple lenders, choose the lender you feel will best work with you and begin the preapproval process.  Bring a copy of all bank account numbers, charge account numbers, and debt amounts to the meeting with the lender.

Search for Properties:  Your Realtor supplies a list of available homes that fall within your parameters.  Drive by these homes at your convenience, judging house and neighborhood from the outside.  Call Your Realtor with your favorite three, for previewing.

Previewing:  Your Realtor arranges for previewing the inside of the selected houses.  Then, they provide a new list, and you continue to search and preview until…

Found It!  You discover the very best home....

Stay tuned for part II!

 

Part IV of IV; the 'Nuts & Bolts' of Marketing your home

The last in a four part series offering tips for marketing your home

Part IV of IV

If You’re Buying Another Home

You may wonder what will happen when you're selling one home and buying another – how will all the details work out? This is a common situation and REALTORS^®, lawyers, and title and escrow companies have plenty of experience in arranging contracts and loans so that the two transactions dovetail smoothly.

And should you sell your home first then buy or buy first then sell? Ideally, it’s best to find a home you like and make an offer subject to selling your current home. This generally works in a normal market. However, in a “hot” market most sellers will not accept a “subject to sale” offer. In this case you need to sell your home first and then buy a new home in the interim period between selling and vacating your house.

If you find that you need to buy the next house before you've received the proceeds from the present one, lending institutions can sometimes make you a short-term " bridge" loan to tide you over between the two transactions. Make sure you fully understand the exposure and emotional investment before proceeding with this type of loan.

Part III of IV; the 'Nuts & Bolts' of Marketing your home

The third in a four part series offering tips for marketing your home

Part III of IV

How Long Has Your House Been on the Market?

Professional appraisers sum up their entire body of knowledge in three words: " Buyers make value." Your home is worth as much as a buyer will pay for it.

If your home has been on the market for months, it’s a clear message that the property may not be worth what you're asking for it. This is particularly true if there haven't been many prospects coming to see it. What you do at that point depends on whether you really need to sell, and whether you're working with a time limit.

If you're not really motivated to move soon, you can always wait - years if necessary - and hope inflation will catch up with the price you want. The problem is that in that time, your home begins to feel shopworn. Buyers become suspicious of a house that's been for sale for a long time.

If you really do need to sell, with your REALTOR^® discuss a schedule for gradually dropping your price until you find a level that attracts buyers. There's no point in saying, " We simply can't sell our house." Anything will sell if the price is right.

Part II of IV; the 'Nuts & Bolts' of Marketing your home

The second in a four part series offering tips for marketing your home

Part II of IV

Showings and Open Houses

To prepare your home for viewing, make it as bright, clean, cheerful and serene as possible. Always look at your home from the buyer's point of view. Your REALTOR^® will probably find a tactful way to suggest that you be absent while the house is being shown to prospective buyers, because your presence will inhibit their actions and conversations. They won’t feel free to open closets and cabinets, test out the plumbing and discuss their observations objectively as they walk through the house. It goes without saying that your children and pets should not be on the premises either.

If your REALTOR^® has scheduled an open house, you may want to notify the neighbors, and assure them that they'll be welcome. They'll jump at the chance to poke around in your house, and sometimes they can turn up a buyer among their friends.

Quick tips for showings and open houses:

• Clean or replace dirty or worn carpets.
• Open all curtains and blinds.
• Replace any burned out light bulbs and turn on all lights.
• Clear all clutter.
• Clear all countertops.
• Wash and put away any dirty dishes.
• Set the dining room or kitchen table if you have particularly nice linen or china.
• Simmer a few drops of vanilla on the stove.
• Put on soft music.
• Burn wood in the fireplace on cold days, otherwise, clean the fireplace.
• Put fresh towels in the bathroom.
• Take any laundry out of the washer and dryer.
• Leave the house so your REALTOR^® is free to deal with prospective buyers in a professional manner.
• Put pets in cages or take them to a neighbor.

Part I of IV; The ‘Nuts & Bolts’ of Marketing Your Home

The first in a four part series offering tips for marketing your home

Part I of IV

Your REALTOR^®’s marketing efforts and considerations will include advertising, showing the property, how long the house has been on the market and whether you're buying another home. Your home should be listed, whenever possible, through a Multiple Listing Service (MLS).

Advertising and Promotion

Properties are commonly advertised through real estate agent Web sites, Internet home search/listing services, classified advertising and real estate guides. Promotion efforts through office and MLS tours are a good way of getting other buyer agents to view your home and to promote it to the buyers they are working with.

Even with all these advertising avenues, " For Sale" signs on front lawns are still remarkably effective. Many REALTORS^® promote their Web sites on the sign and use brochure boxes with the signs to market the property. When appropriate, and with your permission, your REALTOR^® may send a mailing about your property to neighbors. Sometimes one of them has a friend or relative who always wanted to live near them. You never know how far reaching the benefits of word-of-mouth advertising by friends, relatives and neighbors

Part Four of Four: the "nuts & bolts" of short sales.

The last of a 4-part series discussing the basics of Short Sales

Number of Short Sale Offers Received
Homes priced under market value will receive multiple offers. An agent is not required to disclose the terms of those offers, but you do want to know how many offers you are up against.

Here's how it generally works:
•When a short sale home first comes on the market, the first offer will most likely be a tad below list price.
•The second, at list price.
•The third offer will be slightly higher, maybe by $1,000 or $2,000.
•The fourth offer will be significantly more.
You want to make an offer that will beat the competition yet still be below market, or don't waste your time.

Check the Public Records
Do your research before making an offer to purchase. Your agent can find out who is in title, whether a foreclosure notice has been filed and how much is owed to the lender(s). This is important because it will help you to determine how much to offer. 

Part Three of Four: the "nuts & bolts" of short sales.

The third of a 4-part series discussing the basics of Short Sales

Short Sale Listing Agent's Track Record

A listing agent who is advertising a short sale but has never closed a short sale is a risky proposition for you. That's because it's up to the listing agent to submit the short sale package to the lender and negotiate. You’d be better off looking for a Certified Distressed Property Expert, or CDPE. From their website: “A Certified Distressed Property Expert® (CDPE) has a thorough understanding of complex issues in today’s turbulent real estate industry and knowledge of foreclosure avoidance options available to homeowners.” FYI, The Buyer’s agent can't talk to the bank.

Short Sale Seller Qualifications

Find out if the listing agent has received a completed short sale package from the seller, and ask about the contents of that package. A complete short sale package consists, at minimum, of the following:

•Sellers' hardship letter

•Tax returns

•W-2s

•Payroll stubs

•Financial statement

•Bank statements

Some sellers do not want to cooperate and are slow to return these documents. Others have never been told by their agent that these documents are mandatory. Asking if they have this done already can give you a hint of how things may go. You don't want your short sale purchase delayed because the listing agent doesn't have the required documents.