SMART ESSENTIALS FOR BUYING A HOME. Amy J. Hausman

what it will buy in your area of interest. Remember: There’s no time like the present. Most buyers benefit from home appreciation, which leverages a relatively small down-payment investment into a nice return at sale time — when you may be able to move up to a home that is closer to your idea of perfection. If you fool yourself into waiting for what is truly unattainable given your resources, you’ll miss some attractive opportunities that may also become out of reach as weeks and months pass by.

      Myth: Qualified buyers should be able to get their own financing and not rely on seller financing.

      Reality: Sellers sometimes offer financing that can help young buyers and those with limited cash or less-than-perfect credit, who can’t afford to purchase a home with lender financing. Offering financing can help sellers get their homes sold in tough markets without dropping the price below market value. Other sellers may offer rent-to-buy or lease-purchase deals.

      Myth: A home will appraise at the same value whether it is in good condition or not.

      Reality: Although square footage, number of rooms and other non-cosmetic features determine a home’s baseline value compared with properties recently sold in the area, appraisers will factor the home’s condition into the final appraised value. More important, a home’s condition will determine how many buyers become interested in the home and how motivated they are to buy it. Most buyers — like you — prefer homes in move-in condition. Those that need more work frequently sell below market prices.

      Now let’s cut to the chase. First stop: Find and hire a top-notch, professional team using the information in Chapter 2.

       Chapter 1 Roundup Smart Essentials BUY SMART :: What You Have Learned

      >> Check and fix your credit before you apply for a mortgage.

      >> Focus on the 12 essential keys to buying a home.

      >> Being pre-approved for a mortgage beats simply being pre-qualified.

      >> With the right approach, you can buy a home smarter, faster and cheaper.

      >> Planning and information gathering help smooth the home buying process.

      >> Home buying myths can prevent you from buying the home you want.

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      CHAPTER 2 :: TEAM

       In this chapter, you’ll learn smart ways to:

      1. Know what a real estate agent can do for you.

      2. Hire a buyer’s agent to represent your interests with no cost to you.

      3. Select a lender that offers a loan program that fits your financial situation.

TEAM PART 1: SELECT A TOP-NOTCH REALTOR

      No matter where you’re looking to buy a home, it’s essential to work with a top-notch real estate professional to secure your new home. Choosing the right “buyer’s agent” to help you purchase a home is almost as important as picking the right house! It used to be that all real estate agents worked for home sellers. In today’s market, the buyer can hire an agent, too.

      All agents are bound by law to deal fairly and ethically with both buyer and seller. Some buyers may choose to sign a contract to work with a buyer’s agent, whose legal obligation is to represent the interests of the buyer. A buyer’s agent, whose fee or commission is typically paid by the seller (although buyer-paid arrangements aren’t unheard of), is able to negotiate sale price and terms on behalf of the buyer.

       A buyer’s agent can service you in many ways, such as:

      <> Helping you set up a plan of action through an analysis of your needs and your finances, the current housing market, homes available in your price range and lenders’ mortgage options.

      <> Personally conducting your search to find neighborhoods and homes that fit your requirements.

      <> Guiding you through the intricacies of making an offer on a home and presenting your offer to the seller.

      <> Assisting you through both the pre-settlement/pre-closing and settlement/closing processes.

       Essential Takeaway: A buyer’s agent is someone in your corner, looking after your best interests (rather than the seller’s). Your best bet for finding your new home is working with a real estate agent who really knows the area where you’re looking to buy. A neighborhood specialist can give you the most-current data about the area to ensure you’re looking at homes that fit your budget. If you have more questions than the agent can answer, a top agent will know where to get the answers you need.

      What You Need To Know About Your Real Estate Agent While you may be tempted to work with the first agent you interview, consider that buying a home is one of the most important financial decisions you’ll ever make. Be sure to interview several agents before signing a buyer-broker agreement.

      Smart questions to ask agents before you hire one:

      1. Can you provide me with a copy of your buyer’s agency agreement to review? (Be sure to ask follow-up questions after reading the document.)

      2. How long have you worked in the area where I’m looking for a home?

      3. How long have you been a real estate agent? How long have you been with your current brokerage?

      4. Do you work exclusively as a buyer’s agent, or do you also work with sellers? How do you handle transactions where the buyer you represent wants to purchase a home that you or your brokerage has listed for the seller?

      5. How many buyer’s agreements did you work with during the past year?

      6. How many transactions did you close last year for home buyers you worked with? (Also called “buyer-side transactions.”)

      7. How much do your services cost? (If not paid by the seller, a flat fee may be required or the fee may be specified as a percentage of the home’s sale price. Find out under what scenarios you would have to pay the commission.)

      8. What is your preferred method of communication? (Telephone, e-mail, Facebook messages, texts, Twitter messages, in-person. Determine if their answer corresponds to your preferred method. You don’t want to work with someone who won’t — or can’t — accept your late-night texts!)

      9. When are you available to show homes? (If, for some reason, the agent’s availability is narrow — and you work long or odd hours — ensure that you will be able to meet up with the agent to tour homes at mutually agreeable times.)

      10. What’s your general plan of action? How will you determine what homes are best suited — and affordable — for my needs? How will you provide me with new listings as they come on the market?

      When interviewing agents, ask for references from the three most recent transactions. Contact these clients to ask how they felt about their experience. Ask both broad and specific questions:

       > How well does the agent communicate? > Do you think you received sound advice? > Did the agent return your calls/e-mails promptly? > Did anything go wrong during the transaction? > Is there anything you wish the agent had handled differently? > Would you work with this agent again — why or why not?

      Be