Homebuyer's Guide: Finding a Home & Making an Offer

1. The Homebuyer’s Guide Chapter 3 Finding a Home and Making an Offer

2. Agenda Timeline and steps in the home-buying process Your homebuying team Finding the right neighborhood – considering schools, jobs and the community Finding a home to call your own

3. Steps in the Home-buying Process • Prepare for home ownership • Determine how much you can afford to spend • Get your loan pre-approved • Decide what kind of home you want and need • Shop for a home

4. Steps in the Home-buying Process • Make an offer • Get a professional home inspection • Apply for a mortgage loan • Get insurance • Close the loan

5. Your Home-buying Team • Real Estate Agent • Lender • Attorney • Escrow Officer • Title Insurance Officer • Housing Inspector • Appraiser • Surveyor • Insurance Agent • Housing Counselor The Homebuyer’s Guide

6. Tips for a good working relationship with a realtor The Homebuyer’s Guide Talk with prospective realtors – Use the Rule of 3! Once you make a selection of a realtor, use that person exclusively. Read documents or contracts between you and your realtor carefully, making sure you understand the terms and what you are agreeing to. Take notes and pictures on homes you see with your realtor. You won’t remember all of the details. p.21

7. The Agent’s Job The Homebuyer’s Guide Finds out what you want Gives you neighborhood information Researches homes available in price range Gives you copies of listing sheets Takes you to look at houses

8. The Agent’s Job The Homebuyer’s Guide Helps write purchase offer Negotiates with seller to get price for you Refers you to other professionals Explains questions you might have about the legal paperwork and legal process.

9. Finding an Agent The Homebuyer’s Guide Ask friends and relatives for recommendations Check with a national referral service Call your local Association of Realtors Talk with three different realtors to determine a ‘best fit’ for your needs Ask about the agent’s professional record

10. The Attorney The Homebuyer’s Guide May do any of the following: Write real estate contract Search title Conduct closings Settle disputes Review contracts

11. Items Checked in a Home Inspection Structural • Foundation • Roof • Doors • Windows • Ceilings • Walls • Floors Mechanical • Plumbing • Electrical systems • Heating • Air conditioning • Insulation • Ventilation • Septic systems Ask your lender and realtor how and when the inspection will happen and ask that you be present for the inspection

12. Setting Your Neighborhood Standards The Homebuyer’s Guide General safety and desirability Condition of homes Quality of local schools Distance from work

13. Setting Your Neighborhood Standards The Homebuyer’s Guide Availability of public transportation Recreational activities and parks Easy access to shopping Places of worship

14. Shopping for a Neighborhood The Homebuyer’s Guide Get to know neighborhoods Visit at different times of the day Check out local schools

15. Exploring on Your Own The Homebuyer’s Guide Drive through selected neighborhoods Check real estate section and channel Read real estate shopping guides Visit open houses Visit new home subdivisions

16. Exploring on Your Own The Homebuyer’s Guide Look for foreclosed homes Attend auctions Attend tax and foreclosure sales Ask friends and relatives Look at homes for sale by owners

17. Narrowing the Search The Homebuyer’s Guide Cross off houses that cost too much Cross off properties that lack desired features Take a closer look at your top choices Consider using the Housing Priority Checklist to share with your realtor and compare houses to what you want to find in your home. p. 22

18. Fair Market Value The Homebuyer’s Guide Prices of comparable or similar homes Features your home has that others do not Relative price per square foot of your home

19. The Offer Includes… The Homebuyer’s Guide • Price • Amount of earnest money • Legal names of buyers and sellers • Address and legal description of house • Closing date • A list of any items included in the sale like appliances, draperies, or fixtures like a wood burning stove. p.25

20. The Offer Includes… The Homebuyer’s Guide • Financing • List of property the seller is leaving • All contingencies • Time limit for seller acceptance

21. Common Contingency Clauses The Homebuyer’s Guide Financial Contingency Property Appraisal Contingency Termite Inspection Contingency Property Survey Contingency Home inspection Contingency p.26

22. The Home Inspection Report can be used to……. The Homebuyer’s Guide Identify problems that need to be addressed before purchase. Cancel a purchase offer if significant problems are found. Help negotiate an adjustment in the purchase price if you want to buy the house in spite of problems. Persuade the seller to pay for needed repairs. Help you decide whether to move forward with the sale.

23. Summary The Homebuyer’s Guide Read Chapter 3 in the Homebuyer’s Guide Know which professional is responsible in the Homebuying Process Secure professionals that you trust Attend the home inspection to ask questions of the inspector