Here's Where We Come In

CHOOSING - After you figure out how much house you can afford, it’s time to dig deep -

• Where do you want to live?

• What size home will accommodate your family size?

• What specific features are on your wish list?

• What are the must-haves?

While you are busy at work each day, your REALTOR®’s job is to continually search for homes that match your needs. Make sure you choose an agent that you trust, feel comfortable with, and enjoy their company because the home search process can be lengthy. 

Here are some realistic expectations during the home-buying process:

TOURING - Most sellers require some notice before approving your arrival with your agent, sometimes as much as 24 hours - especially if the home is tenant-occupied. Your agent will need to make the showing request with ample notice, however in a “hot market,” the property may already go under contract before you get to see it, even if you had an approved showing! Frustrating, we know - try to be available as soon as you start thinking about a property. All decision-makers should be present during tours as you may not get a 2nd opportunity to view the property before the seller’s deadline for the “highest and best offers.” You may not get to sleep in it if you have to “sleep on it!” Many sellers prefer that you remove your shoes during showings, so footwear should be easily removable (or prepare to cover them with disposable shoe covers.) Strolling in and around the home is what the tour includes, but not climbing into attics or crawl spaces, or trying faucets to test water pressure - these are things that will be examined during the home inspection process if you choose to make an offer and are the winning bidder. Plan on 20-30 minutes for homes that are up to 2500 square feet.

BIDDING - Once you get that “feeling” and are ready to make a bid, your agent will discuss particulars about the property that need to be considered, as well as your goals for moving dates, and your choices regarding title companies, warranty companies, and home inspectors. There are many documents that make up an offer - don’t skim through them! Every word matters - you are entering into a contract that is enforceable in a court of law, so read all of the words! Don’t be afraid to ask questions, even if you think it sounds silly - there is no such thing as a stupid question! An important issue with the Offer to Purchase contract is that this multi-page document includes the words “As Is” at least 6 times (depending on the version being used). This means that although the offer can be contingent upon many factors (financing, buyer’s inspection results, etc.), the offer is presented with the buyer acknowledging and accepting the condition of the home with everything already visible (patent), known, and disclosed. In other words, if there is a large trip-hazard in the driveway, not at all hidden to the buyer upon viewing, the offer is made with the buyer assuming the repair, unless the buyer intends that the offer is contingent upon the seller fixing that issue before closing. This is especially important when certain types of financing are used that will not approve an appraisal for safety, structural, or sanitary issues. In this case, the agent needs to include language that explains what is expected for patent defects (visible, known issues), but the offer can still be contingent upon items discovered by a certified home inspector that were not visible to the naked eye (latent defects) at the time the offer was made.

EXPECTATIONS - Everyone wants a good deal, to pay a fair price or better. But exactly what is a fair price? And how do you figure that out? Here’s where the relationship with your agent couldn’t be more important. Home values are ultimately determined by bank appraisals, and the data used for an appraisal comes from comps - comparable sales. To be an accurate comp, the home sale should be recent (within 6 months or less), nearby (same school system), similar age, size, style, amenities, and condition, and also be an arm’s length transaction (not a foreclosure, short sale, or estate sale.) Agents and appraisers have access to more than just the county records, and this extensive research helps to eliminate sales that don’t qualify as comps and hone in on the ones that do. A trusted agent is an area expert, and has likely seen many of the comps first hand which helps to weigh in on how the data is computed. A word of advice - be sure that the offer being made can be supported by at least 3 good comps, especially if you are using financing to purchase the home. Your lender will be relying upon this same data when they decide whether or not to approve your loan.

More advice on what to expect: The time between making an offer and getting a response from the seller can vary greatly, depending on the level of interest. In some cases, your offer becomes one of many - this is referred to as being “in multiples” and there is often a deadline for submitting your “highest and best” offer. Once the seller has the stack of offers in front of them, the review process usually takes a day or more, and then you will either be given to good news (you are the winning bid) or that another offer was selected and you can choose whether or not to keep your offer in secondary position (as a back-up if the first offer busts).

NEGOTIATING - All negotiations should be prepared in writing and signed by the parties. Texts are not enforceable agreements, and an email isn’t either - although an email can go a long way to prove intention. The best practice is to communicate offers and counter-offers in contract form, signed by the parties. The negotiating process doesn’t have a time limit, but eventually with too much “back and forth” one of the parties is likely to become disinterested and simply move on to accept another offer.

Pricing is the #1 topic in Negotiations, but other discussions will revolve around the terms of the offer, such as timing for inspections, appraisal, possession, closing date, and who is responsible for repairs. Keep in mind the strongest offer may not be the highest priced offer, especially if the seller is looking for specific or unusual terms, such as seller’s extended possession at no charge for 6 months after closing. An offer that includes unique terms that align with the seller’s goals may be what it takes, not an escalation of thousands of dollars over list price. A seasoned professional agent will know how to represent your best interest while helping you to win the bid.

FOLLOWING THE CONTRACT - As previously noted, the Offer to Purchase contract contains multiple pages on which there are many instructions, directions, deadlines - all of which need to be adhered to in order to avoid breach. The buyer has