10 Steps to Help You Make Good Decisions
1 — Offer You Total Market Awareness
I do the shopping for you. We share a cooperating relationship with all real estate offices within our community. I can show you homes that are listed with Stark Company Realtors® or with other firms. I will search the Multiple Listing Service (MLS) daily for new listings that meet your criteria. I will call you with
any new listings so you can decide if this is a home you would like to see. I will also search for “expired” listings and for sale by owners.
Sometimes when a home cannot be found in a neighborhood that you may want to live in, I will contact other Realtors® to find out if they have any new listings coming on the market in your area. I also will do mailings in a specific neighborhood telling homeowners about your needs.
2 — Educate You on Current Market Conditions
The real estate market can be volatile. Though a seller only needs one buyer for their home, they never know when that buyer will appear. A buyer could come the day the for-sale ad first appears or not until a year later. When there are a large number of homes for sale and the homes aren’t selling – at least
not quickly – it is a buyer’s market. In this situation, buyers have many homes to choose from and can negotiate a good price. I educate my buyers so that they can understand the advantage of acting quickly in a seller’s market.
In a seller’s market, the opposite is true. There are a small number of homes for sale, and, when a home does become available, it is snapped up immediately – often at a higher price than was paid earlier for similar homes. Sometimes a higher price is paid than was originally asked.
A market is called balanced when most homes priced for sale at market value sell within a normal period of time. A “normal” or “reasonable” period is 60 to 90 days.
3 — Explain the Benefits of Meeting with a Lender
I have found that buyers who have been to a mortgage lender, without obligation or cost, prior to writing an offer are in a better bargaining position than a buyer who has not. A Realtor® who attaches a pre-qualification letter with the offer adds value to the offer. The seller feels assured that this buyer
can obtain a mortgage. If you are competing with other buyers on a home, this letter may be one of the deciding factors for the seller to accept with your offer first.
A Buyer who has met with a Lender:
• Can shop with confidence knowing what you can afford and what you are comfortable with
• It shows you are a serious buyer and it gives you an advantage in competitive bidding.
4 — Provide You with Financing Programs and Estimated Closing Costs
Meeting with a mortgage lender prior to looking at homes is important. A lender can help you determine which loan programs are best for you and your options such as financing your closing costs. In today’s market FHA is becoming one of the best ways for a buyer without 20% down to finance their
home! As your Realtor®, we can review the different options available to you prior to looking for homes. When looking at different mortgages there are closing costs that have to be paid to that lender for the loan. Not only will you be responsible for the standard closing costs, you will be required to escrow with
most lenders 3 months worth of taxes and homeowners insurance. These are called pre-paids. If you are purchasing a home with less than 20% down, you may be required to pay Private Mortgage Insurance (PMI) with each monthly payment.
5 — Provide You with a Market Analysis on Your Current Home It is important that you know the value of your home in today’s market so that you can better
determine the price range of your next home. I will do a Comparative Market Analysis (CMA) on your current home and prepare a Seller net sheet for you. This is a summary of all the costs involved in the sale of your home.
6 — Explain Contracts and Contingencies
I will help you understand contracts and forms in the real estate buying process. Before you decide to write an offer on a home that you have chosen, you should be aware of items that you would likely want in your offer. Not only would I want you to be aware of these, but as your
Realtor® I would want you to understand “contingencies” so you are comfortable with your decision. Most “contingencies” in an offer have to do with:
• Financing
• Inspection
• Sale of your current home
• Having the Seller provide a Home Warranty
There are also other forms, called “addendums” that are used in a purchase of a home. These addendums may address having the seller pay for a home warranty or even closing costs. As your Realtor®, I will prepare the offer to purchase contract and explain your options. It is important that you understand all forms involved in a purchase.
7 — Negotiate for You as a Third Party
I can negotiate for you as a third party, never alienating the seller nor weakening your position. When negotiating an offer, whether I am a seller’s agent or a buyer’s agent, it is important that you make your offer strong. Not only is the price you offer important but also there are other strategies
we can employ to make your offer acceptable. This is important with any offer you write, whether you are competing with other buyers or not.
One of the things I would advise you to do with your offer is to attach a pre-qualification or comfort letter as well as enough earnest money to let the seller know you are serious. If we have to deal with a counter offer, I will show you the difference that price would make in your mortgage payment or other
types of financing that could work better for you.
8 — Manage Details and Meet Deadlines
I will make sure all contingencies are satisfied within the time frame stated in your offer. Once we have an accepted offer on a home, my job is to see to it that all contingencies are satisfied. It is important that we address these issues in a timely manner so we don’t risk losing our offer.
The first contingency is usually the inspection. I will schedule the inspection if needed and make sure all parties receive a copy of the report. We will then meet and go over any items that were addressed in the report and decide how it should be handled. The second contingency in an offer is the financing. We will set-up an appointment with your lender to start the loan process. It is important to do this once we have an accepted offer to allow time for the
appraisal to be done. If your offer has other contingencies, I will make sure these are satisfied and removed in a timely manner.
9 — Schedule and Attend Your Closing
I will work out a closing time with the seller that works with your schedule. Prior to closing date, I will review with you the documents that your lender and the title company may need from you to ensure the closing goes smoothly. These documents usually include:
• Your homeowner’s insurance certificate, which must be pre-paid for one year
• A cashier’s check for amount of closing costs
• Confirmation that utilities have been transferred into your name
In addition, I will schedule and attend a final walk-through with you to verify that the condition of the
property has not changed. If you are using an Attorney, I will make sure your Attorney receives copies of
your offer and the title insurance policy.
10 — We are a Full Service Company
Stark Company Realtors® prides itself on offering all the services needed to have a successful transaction when purchasing or selling a home. These services, such as Stark EssentialsSM, South Central Mortgage Solutions, LLC (An Affiliate of US Bank, N.A.); and the Universal Home Protection Plan are
some of the ways we can make your home purchase an enjoyable one.
