Buyers Frequently Asked Questions

   Can you show a home for sale that is not listed with your company?
   Can we go to open houses without you?
   How do you get paid?
   How is an offer on a house determined?
   Will there be negotiating?
   What is a home warranty?
   Do I need a home inspection?
   What is earnest money?
   If we do not close, do we lose our earnest money?
   How do we remove our inspection contingency?
   How does the appraisal get done?
   Should we have a survey of the property?
   When do we close?
   What is closing?
   What do I bring to closing?
   How long does closing take?
   When do we get our title to the property?
   What if we want to refer you?

Can you show a home for sale that is not listed with your company?
Yes, I can show you any home no matter what company has it listed. I can also arrange a showing on a home that is for sale by owner. (return to list)

Can we go to open houses without you?
Yes, please feel free to attend open houses, just be sure to give the agent my business card. If you run out of my cards, tell the agent my name and give them my number. If you sign an open house sheet, just put down my name and number out to the side. You do not have to give out your number or address. (return to list)

How do you get paid?
Typically, the sellers pay a commission to my company and I in turn get a percentage. If for some reason the seller refuses to pay my fee, (perhaps a for sale by owner) you will be responsible. (return to list)

How is an offer on a house determined?
This is based on several factors: -The area (Is this home located in a high demand area?) -The number of days on the market (compared to the average number of days a similar home in the area is on the market). -Whether or not you are asking for any seller assistance such as closing costs, allowances, extra appliances, or repair requests. -Closing date – most often, the sooner you can close, the more appealing your offer is to the seller. Sometimes, the factors will be irrelevant with an unmotivated seller and the decision will be yours – Do I like the house enough to pay what the seller is asking? The seller typically has two main priorities – How much money will I net and how quickly can I get it. (return to list)

Will there be negotiating?
Most likely – just as you want the best deal, so does the seller. The majority of the negotiating takes place on the front end with the offer. The home inspection is the second area where negotiation takes place. (return to list)

What is a home warranty?
A home warranty can be purchased by you or you may ask for the seller to purchase it on your behalf. There are many different companies offering warranties for sale. The general coverage is similar and additional coverage may be purchased. If a problem occurs that is covered under the warranty, you phone the company to report it and pay a deductible for the repair. The coverage lasts one year from the date of closing. (return to list)

Do I need a home inspection?
Absolutely! Even if the home appears to be in great shape, I recommend hiring a professional inspector. They will find items that need addressing (sometimes up to 20 pages worth!). Be prepared – this can be a scary aspect of buying a home, but the inspectors are just doing their jobs and informing you of everything they find wrong with the home. I will meet the inspector to let him or her inside. You will need to meet us there at the end of the inspection to go over the report, ask questions and pay the inspector. (return to list)

What is earnest money?
Earnest money is a check written to the company that has the home listed for sale. Traditionally, the earnest money is 1% of the purchase price. The check will be deposited into an escrow account once both parties have accepted the terms of the offer. The money goes toward the purchase of your home. (return to list)

If we do not close, do we lose our earnest money?
Generally there are at least two contingencies in the contract – home inspection and appraisal. If the results of your home inspection cannot be remedied through seller made repairs or financial concessions, you may walk away with earnest money in hand. If the appraised value of the home does not meet or exceed the purchase price and the seller refuses to reduce the price and you refuse to make up the difference, you may walk away with earnest money in hand.
If the contingencies of the contract are removed and you change your mind about the house, expect to lose your earnest money. (return to list)

How do we remove our inspection contingency?
A release of inspection contingency document will be signed by you either accepting the home in its present condition, asking for repairs to be done, or asking for financial concessions. (return to list)

How does the appraisal get done?
Your lender orders an appraisal to be done on the home. If the appraisal amount does not equal or exceed the purchase price, negotiations take place or the contract can be voided. (return to list)

Should we have a survey of the property?
A survey is a good idea. There are two types of surveys – a mortgage loan inspection survey and a boundary survey. Some lenders require a mortgage loan inspection survey and if they do not, the closing attorney will contact me to find out if you would like one done. The result will be a document showing the property lines and how your home sits on the property. If for instance, your neighbors’ driveway is partially on your property or the seller built a fence over the property line, these encroachments would show up. The cost is usually around $175. A boundary survey is performed by a state licensed surveyor who physically marks the property lines with stakes or pins in the ground. The cost is usually $600 and up. (return to list)

When do we close?
Generally, due to daily mortgage insurance, it is in your best interest to close on your home at the end of the month. Of course there is flexibility here and it depends on the arrangement your lender has worked out for you, so be sure and check with your lender to calculate benefits. (return to list)

What is closing?
Closing is when we meet at either a real estate attorney’s office or a title company to exchange money for the deed to the property. You will know ahead of time how much money to bring to closing once I receive a copy of the HUD 1 (settlement statement) which shows the financial breakdown of the transaction. After review, either I or your lender, will let you know this amount as soon as possible. You will receive your title commitment letter and the keys to your new home at closing. Necessary documents will have to be signed including documents from your loan package. Oftentimes, this mass of paperwork and numbers can be mind boggling (especially the Truth In Lending Disclosure) but this is why we have an attorney working for you! (return to list)

What do I bring to closing?
Your money, picture identification, and your social security card. (return to list)

How long does closing take?
Generally, closing takes about an hour. Be prepared, sometimes there are bumps. Loan packages can be late and closing can be delayed, but hang in there – you’re almost home! (return to list)

When do we get our title to the property?
You should receive your title policy in the mail 4-6 weeks after closing. Do not leave closing without your title commitment letter. If you do not receive your title policy in the mail for any reason, call your closing attorney until you do! (return to list)

What if we want to refer you?
That would be fantastic and I hope that you would! My business is based on referrals so I welcome any friend, family member or co-worker that you know who is considering buying or selling. You would be helping me and doing them a favor by giving me their name and number so we could meet. I thank you in advance! (return to list)