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Assembling Your Buying
Team™ Buyer' Network pioneered the team
buying concept. Our exclusive "Buying Team™" concept
provides you with the professional service and advice in all aspects of the real estate
transaction including:
Locating and
Negotiating Real Estate
Buyer's Network
Agents are committed to making the process of
buying as stress free and enjoyable as possible. In order to assist you in the process,
Buyer's Network has developed a unique and precedent setting concept of home buying called
the Buying Team strategy.
By utilizing your Buying Team, you'll find yourself well
prepared when the time comes to make an Offer to Purchase your new home. In cooperation
with your Buyer's Network Agent, we suggest you assemble your Buying Team within the first
two weeks of house hunting. Your Buyer's Network Agent will provide you with a list of
qualified names of local service providers for you to interview and consider as part of
your Buying Team.
Remember, your Buyer' Network Agent is like the quarterback
for your Buying Team. Your Agent is always there to assist you assembling and coordinating
your Buying Team activities, as well as answer your questions during each stage of the
buying process.
Most Buyer's are under the misconception that the more
properties they see, the better educated they are about the market. A better plan is to
work with your Buyer’s Network Agent to view only properties meeting your criteria.
The great majority of all listings can be eliminated by you and your Buyer's Network Agent
by carefully screening the current inventory of available properties before you ever leave
home or get out of the car.
- Your Buyer's Network Agent will assist you in locating houses meeting
your specifications by using our computerized Multiple Listing System (MLS) system which
connects all local Realtor offices. The MLS advertises all newly listed homes by any
Realtor, to all Realtors and their Buyers. Houses not meeting your minimum requirements
and criteria will be immediately ruled out.
- You should casually drive by the properties that you and your Buyer's
Network Agent believe are good prospects. There is no need to make buying real estate a
regimented schedule. Dedicate some convenient time in your schedule to view the
neighborhoods and curb appeal of properties you may be interested in viewing. You'll be
surprised how many prospects can simply be ruled out due to poor location and lack of
exterior appeal. When you find a property that you feel is a strong possibility, contact
your Buyer's Network Agent immediately to make arrangements for a formal viewing. Usually
twenty-four hour advance notice is necessary, especially if the owners are still living on
the premises. Your Agent will then confirm the showing and meet you at the property.
- Remember, you are a part of a Buying Team. You may find a property in
the newspaper, through a personal referral, or by chance. If you find a property not
brought to your attention by your Buyer's Network Agent, contact your Buyer's Network
Agent to research the property and to make contact with the Seller or Seller's Agent to
arrange a viewing.
With a Buyer's Network Agent, buying a house moves at
a comfortable pace set by you. There is no reason that house hunting needs to be a
stressful and tiring process. Buyer's Network will make buying a comfortable and
enjoyable process to find your family's new home.
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Mortgage
Financing
If you're like most buyers, you're going to require a loan in
order to make your purchase. We suggest that you interview and apply for a loan
"pre-approval" mortgage lenders. By being
approved by more than one lender, you have a better chance of negotiating a great interest
rate, and your financial strength is able to be used as a negotiation bargaining tool by
your Buyer's Network Agent. Some things to consider:
- Although the lender doesn't work for you under a written
contract, the lender is required to legally keep your personal and financial information
confidential. You should instruct the lender to speak only with your Buyer's Network Agent
and your Attorney regarding your personal and financial matters. You do not want the
lender to disclose any information to the Seller, Seller's Agent, or Seller's Attorney.
- Secure pre-approvals for the highest amount that you can
afford. You then work with your Buyer's Network Agent to determine your financial comfort
level. You don't need to buy at or near the maximum pre-approval limit, but knowing that
limit will help you better understand your financial position.
- Always mention Buyer’s Network when you contact a
lender, and let the lender know which Buyer’s Network Agent you've contracted. Have
the lender call your Agent with an initial pre-qualification figure followed by faxing the
full written pre-approval. Remember, your Buyer's Network Agent is under contractual
obligation to keep your personal and financial information confidential, and having this
information is an essential part of your Agent's assistance process.
- Make three copies of your original personal
and financial materials requested by your lender. Always keep your
original information in a safe, convenient place in case you need it again during the
buying process.
- Importantly, your pre-approval should include the lender
verifying your income, credit, employment, and other factors that determine your ability
to qualify for a mortgage loan. We recommend that your pre-approval be subject to only a
signed Purchase and Sale agreement and the lender’s appraisal.
- There are basically three types of lenders, each qualified
to provide you with funds, but providing distinctly different levels of service and
flexibility. Buyer's Network does not recommend any one type of lender over another, but
does advise you to interview several and apply to the lenders that you feel most
comfortable with using. Consult your Buyer's Network Agent with questions.
Bank:
Usually
a local savings bank that secures your loan with the institution's own money.
Mortgage Banker:
A lender
that has it's own money to secure your loan, but usually sells your mortgage to a third
party investor either before or immediately after closing your loan. Many mortgage bankers
will provide the service to your loan, but will not actually hold the mortgage note after
closing.
Mortgage Broker:
A mortgage
broker lends money from it's investors exclusively. A mortgage broker will take your
mortgage application, shop your loan to a multitude of investors that offer different
rates and loan programs, until finding the best loan alternative they can recommend. The
loan is usually sold to the investor at closing as part of the closing process.
Click Here to visit
the Buyer's Network Mortgage Center
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Legal Advice
You should strongly consider hiring an attorney to review the
Offer to Purchase or Purchase and Sale Agreement before you sign. Although real
estate agents are trained in the negotiation and purchase of real estate, most aren't
trained, practicing attorneys. That's the best reason to have a trained legal
professional review your purchase contract to make sure that all your legal considerations
have been incorporated into the final documents.
Choose an attorney who specializes in real estate. You may
choose any attorney you wish, but your attorney should incorporate real estate law as the
bulk of the attorney's practice, and should be willing to meet with you to explain and if
necessary, revise the Purchase and Sale Contract to protect your legal interests.
- During the negotiation of Purchase and Sale language and terms, your
attorney should be available to discuss any items with the Seller's Attorney or Agent if
the need arises.
- Discuss professional fees and precisely what you will be getting for
your money. Ask if there will be an additional charge for negotiating the terms of the
Purchase and Sale Agreement with the Seller’s Attorney (if necessary) or if the fee
for reviewing and revising the Purchase and Sale Agreement covers all negotiation.
- Many attorneys give you a choice between hourly fees or a flat rate
fee for standard Purchase and Sale review. Be aware that hourly fees can quickly add up if
there are any unusual circumstances with the property or sale. We recommend to negotiate a
flat rate fee not to exceed a specific amount of dollars per hour unless your attorney
first notifies and receives your permission to proceed.
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Home Inspector
You’ll need a home inspector after the Offer to Purchase
has been accepted and signed by the Seller. Your Buyer’s Network Agent will speak
with you regarding your rights to various home inspections and contingencies for those
inspections which will be included as part of your Offer to Purchase. We recommend that
you inquire about inspectors, fees, and types of inspections prior to an accepted Offer to
Purchase. When choosing home inspectors always insist on an itemized, written report. It
is important to keep in mind that a home inspection serves different purposes:
- Home inspections allow new information to be discovered, which will
enable you to decide whether or not to move ahead with the purchase.
- Home inspections provide you with a brief education on items like age
and maintenance of the different systems (electrical, plumbing, heating, etc.) in the
home.
- A license to conduct home inspections is a great
qualification, but not the only one to consider. Ask if the inspector
is a member of the American Society of Home Inspectors or any other
recognized organization that has standards of training and
requirements of membership. Make sure the inspection company is
insured, and inquire as to what their insurance covers in the event
you need to make a claim for a poor inspection or a missed item.
- If you are applying for a government type loan such as a VA (Veterans
Administration), FHA (Federal Housing Authority) or HUD (Housing and Urban Development)
loan, your inspector needs to provide a pest inspection on the FHA/VA approved pest
inspection form. Ask for this form specifically.
- You should consider having comprehensive inspections. A few dollars
spent up front can save your thousands of dollars and headaches after your purchase. Ask
the inspector to provide the following minimum types of inspections:
General Home Inspection
- This inspection is an overall look at the building and its
important systems such as structure, electric, plumbing, and exterior condition of a
property.
Structural Inspection
- A structural inspection focuses on components such as the
foundation, columns, beams, joists, rafters, walls and roof.
Heating and Cooling Inspection
- The best heating inspection is performed by a heating and
cooling contractor who will inspect the furnace, boiler, burner, and/or air conditioning
system.
Electrical Inspection
- This inspection is best done by an electrician or a general
home inspector specializing in understanding and reporting on the condition and safety of
a property’s electrical system.
Sewer and Waste Systems
- Private Sewer, including septic and cesspool systems,
require that the system passes a Title V compliance inspection. This inspection needs to
be performed by a licensed Title V inspector and is usually the Seller’s
responsibility.
Domestic Water Test
- This is the "potable" drinking water. A domestic
water test will show if there are any dangerous chemicals, lead, or radon levels in the
property’s drinking water.
Radon Gas
- Radon is a commonly found natural gas that is believed to be
a carcinogen. This gas usually enters the house from cracks in the foundation or slab.
Pests including insects and other vermin
- In New England, it is common to find some evidence of insect damage
in older homes. Termites, carpenter ants, powder post beetles, mice, squirrels, and bats
are commonly found to have visited a home during its existence. This inspection should
help reveal if there is any active infestation and the extent of damage that may have been
left behind from previous activity.
Chimney, Wood/Coal Stove and Fireplace
- Commonly found problems may include a damaged flue or liner,
need for a chimney cap, and repair to missing mortar in joints called
"pointing."
Lead Paint
- Federal Law requires that the Buyer have the right to
inspect the property for the presence of lead paint. If you have a child under six that
will be living in the home, it is your responsibility to bring the property in compliance
with the federal and state lead paint laws. Ask your Buyer’s Network Agent for more
details and for a copy of the Lead Paint Disclosure.
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Insurance Agent
In most cases, an insurance agent will need to provide
you with an insurance binder prior to closing. You should contact a local insurance agent,
price the types of insurance you desire, and have that agency contact your Buyer's Network
Agent with any questions. Many insurance agencies offer home warranties. These home
warranties generally cover some of the home’s systems and appliances. We recommend
that you consider a home warranty if you are buying anything except new construction which
usually comes with a builder's limited warranty.
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Summary
Our Buying Team™ strategy allows you to move through
the various stages of purchasing real estate with a sense of confidence and security. Here
is a checklist of the significant stages of your home buying process:
- Interview and hire a qualified and trained Buyer's Network Exclusive
Buyer Agent.
- Obtain loan Pre-Approvals from up to three mortgage lenders.
- Secure the services of a qualified real estate attorney.
- Decide what criteria are most important in a home. (location, number
of bedrooms/bathrooms etc.)
- View and evaluate properties, then decide with your Buyer's Network
Agent whether or not to make an Offer to Purchase.
- You and your Buyer's Network Agent will discuss the true value of the
property, negotiation strategies, and presentation of the Offer to Purchase.
- Your Buyer's Network Agent will keep you apprised of the entire
negotiation of your Offer to Purchase, allowing you to make decisions that accomplish your
predetermined buying goals.
- Once an Offer is accepted, you'll have your Home Inspections of the
premises.
- Your Buyer's Network Agent may renegotiate any undisclosed items
found during Home Inspections.
- Your Attorney, Buyer’s Network Agent, and you will review a
Purchase and Sale Agreement confirming all of the negotiated terms of purchase.
- The day you sign the Purchase and Sale Agreement, you'll need to
bring a personal check for the amount of the escrow deposit agreed to on the Purchase and
Sale Agreement. Ask Your Buyer's Network Agent about the escrow process and to whom you
make the check payable.
- Contact your Insurance Agent to obtain an insurance binder.
- Obtain a Commitment Letter from the Lender with which you have been
pre-approved.
- The commitment due date is clearly defined on the Purchase and Sale
Agreement. Check with your Lender to confirm that you are "Approved" for your
loan prior to that date before you sign the Purchase and Sale Agreement.
- Have your Lender mail or fax a copy of your Commitment letter to your
Buyer’s Network™ Agent once issued.
- Your Buyer's Network Agent will schedule a final "walk
through" of the premises prior to closing to ensure that the property is in the
condition you expect.
- After your walk through, you’ll attend the "closing"
of the transaction.
Thank you for considering Buyer's Network to assist you in
the home buying process. We look forward to dedicating our experience and resources to
assist you in accomplishing your real estate goals. |
