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1. Importance
of Buyer Agent Representation.
2. How
much house can you afford?
3. Why
get pre-approved now?
4. Income
tax savings.
5. Get
Listing by Email Now!
6. Things
NOT to do before buying a home.
7. Know
your costs and fees.
8. Making
an offer.
9. Heart
and Mind.
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Importance
of Buyer Agent Representation.
Buying a home is
one of the largest single investments you’ll ever make. Traditional
real estate agents are hired by sellers to represent their best interests
in the sale of their property. A buyer’s agent is responsible
to you and you alone.
Your Buyer’s
Agent is not selling you a house, they are finding you a home.
Your agent will:
Represent you and help you find the right community
Listen to what you want and not waste your time
Help you negotiate the best price and the best terms
Protect your confidentiality on all matters
Spot problems, investigate issues, counsel you on the market and the
area
Preview properties upon request and advise you on future salability
and any potential problems
Run a market analysis and advise you on a recommended offer
Charge you NOTHING for our representation
Don’t buy
a home alone!
Be smart and buy smart.
Call us.
We will always put your interest first. [top]
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How
much house can you afford?
Ultimately
your lender will determine this. But as a easy and quick rule of thumb:
take your gross monthly income and multiply by .4, next subtract your
month debt payment by this number, then multiply the remaining amount
by 140.
For example: $4000 per month income x .4 = $1600 <<<-
Total allowable debt payment
then take the $1600 minus a car payment $400 and credit
cards $100 = $1600-$400-$100 = $1100
with the
remaining $1100 multiply by 140, this is the amount you qualify for:
$1100x140 = $154,000
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Why
get pre-approved right now?
The first step to
purchasing a home is to line up the financing you’ll need for
your mortgage. Once this is established, the rest of the process is
easy.
Meet With Several Reputable Lenders
Lenders who seem most responsive are usually the most eager to help
you. There are all kinds of loan products available with different
rates and features. A competent loan officer will educate you and
guide you through the options that are the best for your specific
situation.
Get Your Mortgage Pre-Approved
Unlike prequalification (a quick estimate of your borrowing potential),
pre-approval is a formal approval of a specific mortgage amount –
typically the maximum you can borrow. You’ll receive a Good
Faith Estimate of your closing expenses. By initiation the mortgage
process early, you’ll be in a better position for your home
search and purchase.
Save time by shopping within your pre-approved price range
Save money dealing with a comfortable seller
Close more quickly and easily
Less likely to have any last minute surprises
Shop Within Your Budget
Once you’re pre-approved, you’ll know exactly how much
house you can afford. And you’ll have an edge over the other
buyers in multiple-offer or negotiating situations.
Improve
Your Buying Power
We will give you the basic financing information you need, so when
you speak with lenders, you’ll have questions in mind. Pre-approval
improves your buying power. That way, when you go shopping, you’ll
feel like you have a suitcase full of cash!
Click Here to get pre-approved now, we will use our volume of business
to get you a better deal! (We
bring our loan officers with Countrywide, Bank of America, Chase,
and other major lenders dozen of new loans every year, how many loans
do you bring your loan officer every year?) [top]
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Income
tax savings
Because of income
tax deductions, the government is basically subsidizing your purchase
of a home. Renters on the other hand get no write-off at all for any
and all of their rent! All of the interest and property taxes you pay
in a given year can be deducted from your gross income to reduce your
taxable income!
For example, assume
your initial loan balance is $300,000 with an interest rate of eight
percent. During the first year you would pay $24,000 in interest.
If your first payment is January 1st, your taxable income would be
almost $24,000 less – due to the IRS interest rate deduction,
imagine having your taxable income go from $65,000 to $51,000 - this
is a HUGE tax savings.
Property taxes are deductible, too. Whatever property taxes you pay
in a given year may also be deducted from your gross income, lowering
your tax obligation!
The thing to remember
is these deductions are available to those who itemize and NOT those
who take the standard deduction, the larger your mortgage the more
likely that you can take advantage of these savings. Check with your
accountant. [top]
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Get
Listing by Email Now!
Congratulations for visiting our site. You as the 'internet empowered
consumer" have a huge advantage over the other buyers. One of
the best things you can do is to start
getting emailed list of property the match what you are looking
for. This is one of the single best things you can do to learn the
market, learn what your money can buy, and give you an overall feel
for property values. If you do this for a period of time before the
time comes to buy you will probably have a better idea of what works
for you than the average agent will! The average agent in our area
sells less than 8 homes each year, which mean that they probably only
looked 1 time during an entire year for a buyer looking for a property
similiar to yours! Our team sold over 75 homes last year, put our
knowledge to work for you! [top]
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Things
NOT to do before buying a home
Don't move the money
around! With most loans, lenders will scrutinize large deposits of any
kind. They are basically making sure that this new found deposit is
"your" money and not borrowed funds. Generally they like to
see about 6 month of time pass between large "abnormal" deposits,
otherwise they will be looking for a well documented paper trail.
Don't apply for credit!
Shopping for a car can frequently be the kiss of death when buying a
home! If the lender feels your current monthly debt situation is about
to change they may reduce the amount you qualify for or deny your loan
all together. Thinking of getting some of the zero down, no interest,
no payments furniture for the new home? If you do the lender is going
to take that future payment into account, if that payment is $100 a
month, you could lop off $15,000 worth of house you would have qualified
for! If you are planning any purchases at all wait until after you have
closed on your new home, or at least have a serious talk with your loan
officer.
Avoid changing jobs
when possible. If you are planning on making a career change before
buying a new home, don't. Close on the new home first! Lender's like
to see continuous employment in the "same line of work", so
changing can be o.k. if you are basically doing the same thing, but
watch out if you are planning on "reinventing yourself" or
becoming self-employed, you might end up having to wait TWO YEARS until
you will be able to buy again. [top]
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Know
your costs and fees.
Here is an explanation
of expenses you should expect to be negotiating during the offer process.
Earnest Money
This money is like a security deposit or collateral for sellers to
take their house off the market. It will be deposited into a non-interest-bearing
account that no one can touch until closing or until both parties
agree to release it. At closing, the money can be applied toward your
purchase.
The amount depends on buyers’ finances and is typically negotiated
during the offer process. The higher the amount, the more you show
the seller you’re a serious buyer, which gives you better negotiation.
Here is a rough guideline: $1000 or 1% of the price.
Earnest money must be paid and deposited immediately when the offer
is accepted by both parties.
Appraisal Fee
The lender has the home appraised to make sure that the purchase price
is appropriate. The appraisal fee is approximately $350.00-$450.00
depending on the size of the home. Some lenders require you to pay
this immediately, some have you pay upon closing. Timing varies depending
on the lender, usually within two weeks.
The Kris Weaver Real Estate Team follows up with the lender to make
sure everything is completed in time for closing.
Home Inspection
This offers the buyer the best protection. The home inspector looks
for major things. Because real estate agents are not inspectors, this
is one area where we cannot apply our experience. We must remain impartial
during this process. You, however, should be present for the inspection.
We recommend you allow enough time and take detailed notes. The inspector
will also give you a report. Afterwards, we’ll discuss any repairs
you want the sellers to make.
Approximate amount of the home inspection is $350.00 for 3,000 square
feet, up to $600.00 for up to 6,000 square feet. The price usually
depends on the age and size of the home. The inspector will quote
you an amount. Expect to pay at time of inspection.
Closing
Costs
Your lender will provide you with a Good Faith Estimate of closing costs,
such as:
Lender fee
Title company fee
Title search
Transaction recording fee
Courier costs
Costs that fluctuate include taxes, escrow amount for taxes and insurance
and closing date. These will be paid at closing which is scheduled by
the lender. The Kris Weaver Real Estate Team follows up with the lender
to make sure everything is ready in time for closing.
Termite
Inspection
The buyer is responsible for this. Estimated cost is $50.00-$75.00.
The inspector will ask you for a check if you are present during the
inspection. Otherwise, it’s paid at closing.
The Kris Weaver
Real Estate Team will schedule the termite inspection at the same time
as the home inspection if possible, in the first 7-14 days.
Homeowners
Insurance
This insurance varies depending upon age, condition and location of
the home. Insurance is paid one year in advance, either at closing or
in advance of closing. Lenders may escrow on a monthly basis as part
of the PITI. The buyer is responsible for securing homeowners insurance.
Home Warranty
The Kris Weaver Real Estate Team highly recommends it. It covers most
major appliances, like furnace, stove, or A/C for one year. The seller
usually pays for this, but it is negotiable. Approximate cost is $300.00-$600.00
with deductible. [top]
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Making
an offer
Once you’ve
found the right home, you will want to review the detailed information
about the offer contract. Your Kris Weaver Real Estate Team agent will
fill out a contract to purchase. He or she will thoroughly explain the
contract, so the details will not seem so overwhelming. If there is
anything you do not understand, feel free to ask questions at any time.
The offer contract is a binding, legal document. When you decide to
make an offer for a home, you must be ready to buy. We advise you to
review this carefully. We will guide you toward getting your offer accepted
without jeopardizing the deal.
Included in your
contract:
Exactly what you’re willing to offer
Price and deposit
Inspection and warranty
Financing, inclusions and other details
After you have signed
the offer contract, your Kris Weaver Real Estate Team agent will deliver
the offer to the listing agent who will present it to the seller. Sometimes
sellers counter offer, changing your original price, exclusions, earnest
money deposit or some other detail. This process moves quickly, so be
ready.
When terms are agreeable
to both parties, the buyers and sellers sign the completed contracts.
Everyone receives a copy of the contract, which at this point is considered
a ratified purchase contract.
Once both parties
accept the offer, you will need to have a check ready for the earnest
money. That check will need to be deposited the day of acceptance unless
otherwise agreed. [top]
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Heart
and Mind.
Over the years we’ve
discovered that most folks let their heart find the home they love and
then try to justify their purchase afterward. Our goal is to help you
find a property that not only wins your heart, but makes good investment
sense too. When you call us, you’ll be tapping into a wealth of
information and market experience. We are accustomed to working with
a variety of clients - from the first-time Buyer to veterans of multi-million
dollar real estate transactions. Regardless of the level of experience
of our client, we will answer questions with straight talk and facts.
No jargon or hype. No song and dance. Just the plain old truth. Here’s
where you start:
Survey the Landscape
Drive around and get a feeling for the area and its many neighborhoods.
Then, meet with us for about an hour to discuss your plans, time frame,
“wish” list and “have to have” list. At that
meeting we will also discuss how we will be working together, what
options you have as a Buyer for real estate representation, and how
agency works in Michigan.
Search For Your Dream Home
After our first meeting and a review of our “game plan”,
we’ll go out and preview some properties. We will have done
our homework and have selected the most likely candidates! We won’t
waste your valuable time looking at homes that are not suitable. It's
likely that if you’ve shared with us all of your requirements
and we’ve listened carefully, we will find you the right home
in an afternoon. Occasionally the first day becomes a familiarization
tour and it takes another day to narrow down choices. Once you’ve
fallen in love with a home, we’ll help you make a decision,
write up the contract on a State of Michigan approved form, negotiate
the purchase, and you’ll be on your way.
Take Advantage of a Personal Shopper
You will have the advantage of working with one of our Myself or one
of my Buyer Specialists, which is like having your own personal shopper!
Our professional team of Buyer Specialists focuses solely on Buyers
and makes it their full time priority to know all of the listed properties
in the area (and some unlisted ones too!) If we don’t find the
home you want before you leave the area, (which happens sometimes),
we’ll make sure you are included in our Instant Buyer Notification
System - when a new listing hits the market, you will be notified
right away. We’ll make sure you have “first pick”
of the best properties!
Get The Whole Picture
Just a word about showings…through the Multiple Listing System
(and on our website), you can have access to ALL of the listed properties
for sale in the entire N.W Michigan area! Unfortunately, there are
a few brokers in our area who only show their company’s listings,
thereby giving their Buyers only a partial picture of the market and
possibly eliminating that perfect dream home for their client. Some
company policies are to publish only their inventory, which misleads
Buyers and gives them only a limited partial picture. We show all
listings, regardless of who has them and sometimes show “For
Sale By Owners” and unlisted properties. In other words, we
will do whatever it takes to find you what you want.
Negotiating Your Best Deal
In spite of the current economic climate, ours is not a market where
you can steal property. Most properties in the Grand Travers, Antrim,
and Leelanau counties sell within 5% or less of their listed price.
We’ll provide the facts about recent sales. If we are representing
you, we can help you determine the best offer to make which has a
realistic chance of succeeding. Our specific advice will be based
on years of experience and more than 400 successful transactions.
But here are some general tips:
Make your offers clean and simple, with the fewest contingencies
possible.
Have “vision” beyond the obvious - many Buyers can’t
see potential in
a property that doesn’t present itself well -if you can, there
may be an opportunity for you.
If you are not paying cash, pre-qualify with a local lender and submit
the letter of approval with your offer.
Write a letter (or we can do it for you) to the
Sellers explaining why their home is the perfect choice for your family.
We’ll send it with the offer. Personalizing your offer from
others can sometimes make a huge impact.
Financing, Title Work and Other Details
Most area Buyers secure financing through locally based mortgage brokers.
Most homes under $1 million can be financed at 75-100% of value. Terms
for loans over $1 million are determined individually, as are loans
for construction and vacant land.
Upon sale, Michigan mayrequires the closing agent to withhold 2% of
proceeds from non-resident Sellers and to ensure the Seller files
a tax return reporting the gain the next year. Excess funds are returned.
In Michigan, the Seller pays for title insurance fees. Escrow fees
typically total less than $300. You can review financing costs with
your lender. In many of our areas, there are varying rates of transfer
tax, which are often negotiable with the Seller.
Long Distance
Closings
Thanks to the convenience of technology and overnight delivery, most
of our closings are handled long distance. We will oversee completion
of inspections and appraisals, maintain day-to-day communications
between Seller and Buyer, the lender and the title company. We commit
to remaining your primary source of information and assistance, even
months or years after closing. We don’t believe our relationship
is a fleeting one, but rather an opportunity to establish a lasting
friendship. We know that the greatest praise we can receive for a
job well done is the referral of your friends and family. We look
forward to meeting them! [top]
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