Whether you are a first-time homebuyer or a seasoned veteran, buying a home is a complex process. It is our job to make this process as smooth (and fun!) as possible for you.
How will Region Realty help me find the 'right property'?
First, we will have to understand what the 'right property' means to you. We spend time listening to you on the front end, and becoming aware of the circumstances surrounding your decision to buy. It is important that we understand the type of property you want to buy, the price you can afford, and the criteria that is most important to you. We have formulated a worksheet to help you in this process.
What is the Residential Buyer / Tenant Representation Agreement, and why do I need to sign it?
Actually, before we get started, we will have you review and sign two forms.
The first is the Information About Brokerage Services (IABS). Texas law requires that we provide this information to you. The intent of the form is to give you information about the duties of the real estate broker, depending upon whom the broker represents. A real estate broker can represent the buyer/tenant or the seller/landlord. The broker can also act as an intermediary with full disclosure and the written consent of each party to the transaction.
The second form is the Residential Buyer/Tenant Representation Agreement. The purpose of this form is, among other things, to make clear the agency relationship of the real estate broker. Without this signed agreement, you are the customer of the broker, and the broker is not working in your best interests, but in the interest of the seller/landlord; therefore, it is in your best interest to ensure this form is signed prior to viewing any forms.
Do I need to be pre-approved for a loan?
You will need to visit with a loan originator (mortgage broker, mortgage banker, bank or credit union loan officer) if you have not already done so. This will establish the price range of homes we can show you. It is very common in today's real estate market that you be (at the very least) pre-qualified for a mortgage, but better yet that you be pre-approved for your mortgage. When the time comes to present a contract offer on a property, the sellers of the property will want to have some assurances that the terms and conditions of the contract can be met by you, the purchaser. If you don't already know a real estate loan originator, we can refer a few to you.
Okay, I am pre-approved...now what?
Now we take your criteria, couple it with the pre-approved loan amount, and start our search. Once we identify the best homes for you, we will start touring those homes to look for the one that best matches your criteria.
How often will we go out looking at homes?
Once we start, we don't stop until we find you a new home. Often, you will find the right home on the first or second time out looking. Other times, it may take many trips and some adjustments of your criteria, if suitable properties are not turning up. We take the time to ensure you feel comfortable about your decision. We will never pressure you to buy a home. We take great pride and pleasure in finding you that perfect fit.
What happens once we find the right home?
After we find a home you like, we prepare a Competitive Market Analysis (CMA) showing the market activity for properties similar to the one you are interested in purchasing. This tells you whether or not the seller's asking price is reasonable, and it identifies for you a range of pricing within which a reasonable offer can be made.
We also review the Seller's Disclosure Form, which is a legally required disclosure by the seller informing you, the buyer, of all known defects and items not functioning in the home. The Seller's Disclosure may or may not reveal items that affect your offering price, but we will review it with you and discuss anything noteworthy.
What happens during the offer process?
We write up an offer for an amount that you feel is appropriate based upon the market analysis, age and visible condition of the home, and other factors. We know how to write good offers that will merit serious consideration, while still trying to get you the best deal we can.
We try to write win-win offers, while at the same time ensuring that you obtain the terms and conditions that work for you.
What happens after the seller has my offer?
We will allow a reasonable amount of time for the seller to consider your offer. This could range from one day to several days depending on weekends, holidays, whether the seller is living in the home or is out of state, or other factors. We don't want to rush the seller, but at the same time, you should expect the courtesy of a prompt response.
The seller can do one of three things with your offer. He can accept it 'as-is', he can reject it, or he can respond with a counter-offer. You may in turn accept, reject or counter-offer his counter-offer. This process will eventually result in an agreed deal, or no deal at all.
Once the seller signs our offer, what happens next?
When you and the seller sign an option contract, you will write two checks. Once check will be made out to the title company, and is called 'earnest money.' The title company holds these funds in escrow throughout the transaction (keep in mind that they will cash this check during the process). The amount of earnest money is typically 1% of the negotiated sales price. These funds are not at risk if you should decide not to buy the home during the option period.
The second check is much smaller and is written out directly to the seller. The seller has the right to cash that check immediately. This is called the 'option fee.' For the option fee, we typically use the amount of $100 for homes up to $1 million, and $250 for homes exceeding $1 million.
From the sellers standpoint, the non-refundable option fee has to be small enough to encourage you to enter the contract.
From your standpoint, this option fee prevents the seller from selling the home to anyone else during the option period while you are doing your inspections.
You will use the option period (typically 5 to 10 days) to conduct your investigations of the property and determine if it meets your needs. During the option period, you can terminate the contract at any time and for any reason whatsoever, and the title company has the obligation to return the earnest money to you. All you have lost is the small option fee and any money spent on the inspections.
The option fee must be delivered to the seller (or their agent) within two days of the full execution of the contract.
In regards to the inspection, you will contact a licensed home inspector and an inspector of wood-destroying insects to perform their respective inspections. The inspector's job is to educate you about the condition of the home. To do this, the inspector must analyze the homes structural and mechanical features well and interpret what they find.
You should feel free to discuss the home's condition with the inspector, and ask him to clarify any items on his report.
Upon completion of the inspections, we will go over with you the inspection reports, and help you decide if there are items that cause concern.
What are my choices after receiving the property inspection report?
You have three choices prior to the end of the option period. 1) You can cancel the deal and forfeit the option fee to the seller - in which case we start looking for another home. 2) You can report that everything checked out fine and ask for nothing further - in which case the deal moves forward unchanged. 3) You can request changes to the original contract, which the seller may or may not agree to consider. Most commonly, your inspection will reveal minor and/or major condition issues that may cause you to worry about future repair costs related to owning the home.
Is the seller required to repair or replace the items that are noted on the inspection report?
The seller has no obligation to perform any repairs whatsoever related to the sale of the home. Real estate is sold 'as-is' except for those items agreed to in advance and in writing by you and the seller. In most instances, the original offer will contain no such agreements. On the other hand, if the inspection reveals problems that will cause you to cancel the deal during the option period, letting the seller know about your concerns, and giving the seller a chance to keep you in the deal by agreeing to remedy or compensate for property defects, is a reasonable way to proceed. After all, if you back out, the seller now knows about these condition problems and will have to disclose the information to the next buyer. So it's in the seller's best interest to try and work with you.
Our role at this point will be to negotiate on your behalf so that you have the best chance of paying a price that reflects not only the current real estate market but also the current condition of the property. This is where it helps to have perspective. If you have submitted a full price offer on a home, you are not unreasonable to expect some help on repair issues that are revealed by the inspection. On the other hand, if you made an aggressive offer, below market value, the seller may have no room left to negotiate further allowances.
Once the option period ends, are we guaranteed that the sale will close?
Nothing is guaranteed until the closing and funding actually occur. We still have to get your home appraised by your lender. Having done our homework, and made an offer which is supported by market data, you can feel confident that your lender will agree with our valuation; however, one can never be completely certain of what lenders and their underwriters will do.
We must also remain diligent with regard to your mortgage and make sure your loan originator receives a copy of the contract and anything else he asks for related to the sale. Of course, being pre-approved lets you know that your initial financial numbers are satisfactory, but you also have to know that you should do nothing that may impact your credit report or your credit score, such as deciding to buy a new car or furniture before your sale closes. We will be in direct contact with both you and your lender making sure that everything is progressing as needed.
How long will the home buying process take?
The home buying process normally takes from 25 to 45 days from the time your offer is accepted until closing.
OUR PLEDGE TO OUR BUYERS
We pledge to devote our time, resources, high energy and negotiating skills to find you a home at the best possible price the market will bear.