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:

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

To download or print this document... Click Here