Perhaps you want to start paying off your own mortgage and not your landlord’s or maybe you’ve outgrown your current home. Are you looking to expand your investment portfolio by buying a great rental property? Would you like a larger yard? Would you rather live in a different area? Whatever your reasons for buying we can work with you to choose the right property.
Did you know that most buyer’s agents are paid by the listing agent? Many firms, charge a few hundred dollars to the buyer known as the admin fee or flat fee. Note: LuxManor does not charge this to our clients.
Choosing the Right Real Estate Agent
Here are some factors to consider when choosing your real estate professional:
- A Realtor vs. a real estate agent: Realtors are real estate agents who live to a higher standard and level of care. All LuxManor agents are Realtors.
- Construction knowledge: Want solid insight into the home’s condition when walking through the home for the first time? One home visit with a LuxManor Realtor and you’ll see a huge difference over most agents. Check out our YouTube page to learn more about homes and construction.
- A full-time Agent – with lots of experience.
- Choose an agent who listens attentively to your needs and concerns. Pick an agent with whom you feel comfortable. Do they have your best interest at heart? Trust and care are how LuxManor Realtors have grown their business through referral and repeat clients.
- Daily updates: LuxManor Realtors can provide both new listings as they come on the market and coming soon listings when available through the MLS. The MLS is the database that all brokerage firms share.
Preparing to Buy
Before you start shopping for your property, it is a good idea to make some preparations.
If you’re paying cash, you’ll need statements or a letter from your bank to show the seller you are able to buy.
If you’re financing the property, here are some of the items your lender will likely require:
- Bank account statements
- Recent pay stubs
- Tax returns for the past two years
- Last 2 years’ W2
- Copies of leases for investment properties (if applicable)
- Current mortgage statements (if applicable)
- 401K statements, life insurance, stocks, bonds, and mutual account information.
Your credit score will have a huge impact on your interest rate, what type of loan you can get (and therefore what property you can buy), and at what price.
LuxManor Real Estate can recommend reputable lenders. One of them can check your credit and advise you on your current options and if there is anything you can do to expand your options.
Be Careful with Your Finances
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.
Finding the Home
Get to know the neighborhoods which interest you and select the best properties available. Your Realtor will make appointments to visit them. Your agent should be able to gain access to any listing including any other company’s listing.
The Offer
Once you have picked out the property you want to purchase, your agent will help advise on the terms of an offer and write it using the appropriate forms. LuxManor Realtors have successfully negotiated well over 1,000 transactions. We know how to best structure an offer.
The key terms to consider for your offer are as follows: Offer price, down payment (difference between sales price and loan amount), earnest money deposit (how much you’ll tie up between contract and closing), financing contingency, closing date, inspections, an appraisal contingency, repairs, allowing the seller to rent back, and more. Your agent can discuss pros and cons of each of these.
If the seller agrees to your terms, they’ll accept the offer. The seller could also reject the offer or counter the offer by changing any terms and sending back to see if you, the buyer, agree to those changes.
Post Contract Ratification
Once the buyer and seller have come to a written agreement on all terms and everyone has a copy, the property is under contract.
The Closing Agent is an independent party representing the contract and will usually hold your deposit in escrow. This agent will ensure all liens are paid off before you become the owner (clear title). You will also likely want to buy title insurance through the title company.
Meanwhile, you’ll need to be working with your lender to provide evidence that you qualify for the terms of the loan. This is typically collected by the loan officer who submits it to the underwriter for approval/rejection. The lender will also arrange for the appraisal.
Before too long you’ll need to obtain hazard insurance for the property. The policy will start on closing day. Some buyers pay the annual premium each year and others have a lender who collects 1/12 of the annual premium each month and pays the bill at the end of the year. This also applies to property taxes.
If you have an inspection, this is usually done within a few days of contract ratification. Your inspector will provide a more detailed description of the condition of the home and advise on how the home operates.
Closing Day
You will most likely visit the property just before closing to verify that everything is in substantially the same as when you last viewed the property, that there are no extra items left behind, and that everything included in your purchase is still at the property.
You’ll also need to have wired any additional necessary funds needed for closing to the title company. The closing agent will furnish all parties involved with a settlement statement, which details the money flowing through the transaction. You and the seller(s) will sign this statement, as well as the closing agent, certifying its accuracy. If you are obtaining financing, you will have to sign all pertinent documentation required by the lending institution (yes, it will be a large stack promising to repay the loan). The seller should arrange to have all property keys and any other important information for you at the closing so that you may receive these items at this time.
After closing, it’s time to call the utility companies, move in, and enjoy your new property!
Closing Thoughts
Buying and selling at the same time? No problem for LuxManor Realtors. We have lots of experience making sure everything falls into place.
If you bought a rental and need a great tenant, we have you covered for this, too.
Remember, as a past LuxManor client, we’re always happy to answer any questions you may have about your purchase or new property. We’re here to help well after the transaction is closed.
Contact LuxManor Real Estate today to buy your next property!