It looks like you're new here. I appreciate you stopping by! Feel free to throw down some graffiti on my wall by adding a comment to this post! And, if you like what you see, please subscribe to the feed and I'll deliver all my new content, right to you! Thanks for visiting!

photo credit: David Watson

My goal in working with Buyer clients with a contract to purchase a home is always to make the Closing a non-event. I strive to make sure all the footwork is done beforehand so when we sit down at the Title Company to sign the forest of documents that is a real estate transaction there are no surprises. That means all the items in the contract have been addressed, and the financed money is final and has been wired to the Closing Company.

As the day for closing approached, the lender had been in constant contact and had the figures ready. The Title Company had prepared the settlement sheets for review. It is very important to look through these figures carefully as any concessions may not be called out specifically. Rather, numbers that would typically appear under the Buyers column will be in the Sellers, and potentially vice versa.

The big lesson I learned in this transaction as both the Buyer and the Agent is to have the money transferred into an accessible account several days in advance. I knew where the money was coming from and which bank was going to generate the certified check. All I needed to do was authorize the transfers in time to make sure everything cleared and the bank was willing and able to create the check. I almost waited too long. So my recommendation is get your money in a pile early so you don’t have to stress over your cash at closing.

We did a final walk-through at the property on the way to the Closing. We entered the Closing Company with check in hand and everything proceeded without a hitch.

Now we own a house and have 3 days to get out of the condo before the renters move in. This is a great move in the current housing market; especially for Buyers out there worried about selling their existing home or condo in this market. We decided to keep the condo as an asset and take advantage of the slower housing market to step up into a bigger property. The rental property has some nice benefits to it including: expense deductions, unit depreciation, market appreciation in time, and pay down on the existing debt. Having a quality tenant to occupy the space on short notice was very helpful to the whole transaction

It’s Go Time! Why is MOVE a four-letter word? Buy a house and find out. I’m serious. If it has been a while since you’ve moved I would recommend everyone to pick a weekend to box ALL your stuff and move it to the garage and then back into the house. At the very least it will be a good workout. Actually, our move went as smooth as can be expected. We didn’t use a moving company but I will certainly consider this option next time. Family and friends helped at critical times and we a settling into the new space. The dog is loving the backyard and is keeping a close eye on all the squirrels in neighborhood.

The entire experience was a great learning opportunity for me and my clients will benefit from it. The better I can see the world through their eyes the better agent I will become. So if you know anyone looking to buy or sell a home, give me or the team a call and see how we can help you. And if you need some cardboard boxes I’m giving those away while supplies last!

The Inspection and Financing

We have a contract! Don’t Panic! Now, what is it REALLY going to cost us and what kind of shape is it REALLY in. This is where we find out how much we REALLY want a new home.

Like any smart home-buyer, we were pre-approved for financing and had a couple of options on how to structure the possible loan. Now that the property & price are identified the real numbers come into play. As a Buyer, comparing GFE’s (Good Faith Estimate) from different Loan Originators feels like I’m standing on a subway platform watching a professional three-card Monte (the bent cards & you have to catch the queen). There are known costs, estimated costs, pre-paid items, escrow accounts, and points all arranged in a very detailed page. The problem for the average buyer is the categories vary between lenders but some how the numbers come out the same at the bottom. Some people are good just looking for the interest rate and monthly payment. Others will create spreadsheets comparing individual costs and categories and lay awake at night thinking about the dollars involved. I like the spreadsheets, for some reason. After a few nights of restless sleep, I have a new found appreciation for my clients and the level of anxiety that accompanies your name to a sizable amount of debt.

What I discovered is at the end of the day you have to make a decision and pick a loan package. If you are working with quality lenders the top 2 options are really very close in costs and it comes down to personal comfort. You can maximize your down payment to lower your monthly payment or minimize the down payment to keep cash available for repairs or other investments. It’s your money, you get to make the call.

The Inspection appointment is one of my favorite events during a contract because new or old, you just never know what you will learn at the end of the day. I am always entertained by homeowner modifications completed over the years. More than once I have heard a client or inspector say “What were they thinking?” It isn’t a perfect world and I’m telling you right now, your house is not perfect. Get over it and get on with it. If the house is solid and there aren’t major health or safety issues involved we will likely find an agreement that works for the Buyer and Seller.

I am convinced the Inspection process does work. It provides the Buyer an opportunity to turn and run, negotiate for work on the house, or sign on as is. Each house and each Buyer is a one of a kind and the inspection process helps the Buyer get acquainted with the investment. Our house is a 1951 frame built structure and there are issues throughout the house. However, they are issues we are willing to deal with on our own terms. We have the knowledge and the resolve to work with the issues during our time in the house. It is go-time and we’re ready to seal the deal!

Click here to view Part 1

We have found the property! After months (years?) of looking at properties and neighborhoods we have identified a nice little home that fits the bill for our current real estate needs. Like most young couples we have approached the purchase of a home as a long term decision because “we are going to live here a very long time.” The Realtor® in me knows we are likely to move, and purchase, again within the next few years, along with the rest of the country. This piece of information, and knowing we do not need to buy on a tight timeline, allows us to approach a contract offer from a more relaxed position.

One of the biggest lessons I have learned as a Buyer’s Agent in real estate transactions is to determine your goal, or target, and “choose your battle.” For most Buyer’s and Seller’s the most important battle is the Price, and at the end of the day it is the “Net Purchase Price” that matters. If a Buyer truly wants a house, and the house meets the real requirements, then bring a real offer based on the market education provided by your Realtor®. Presenting a simple and serious offer will always get a better response from a Seller than an offer full of concessions (Seller paid costs and buy downs). Some Buyers will load up an offer with numerous negotiation items thinking they can give up most as negotiating tactics with the Sellers. The problem becomes when the offer has too many concessions and the Seller’s reject the offer outright and you never get the chance to sit at the negotiation table.

Negotiations and Counterproposals are an opportunity! I always enjoy the opportunity to work towards an agreement between the Seller and the Buyer. It is interesting to me that everyone involved in a real estate transaction want the same thing, a satisfying transaction. Far too many Buyers and Sellers will get emotional, find an offer “insulting,” and simply shut down the deal. Using a Realtor® allows the principle parties to step back and consider advice before making a decision. The professional real estate agent is a 3^rd party that can work a deal through the emotional baggage and stress that arises due to both the financial and emotional investments the Buyers and Sellers bring to the table.

After presenting the initial offer, and a couple of rounds of “opportunity” back and forth, we have a fully executed contract to purchase a house in the location we want. Now we begin the due diligence on the property and getting the real numbers for financing the deal.

Stay tuned for the rest of the story!