Benefits of Owning a Home
Owning a home can bring financial rewards as well as a personal satisfaction that comes with knowing that you have a piece of the American dream. Your comfort throughout the home buying process is very important to me. The only way that you can feel comfortable in such a large purchase is to feel informed. It is my promise to keep you informed and answer your questions as they arise. You can trust me to manage the complexities of the process with real knowledge, real service, and real solutions. The benefits listed below are just the tip of the iceberg for homeowners.
• Credit: Owning a home helps you establish financial credibility. |
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| • Investment: Real estate values generally rise over a period of years, and as you make |
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more payments and own more of your home, you add to its investment value. Most improvements you make will also add to its value. |
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| • Owning a home increases your savings: Unlike rent payments, a portion of the money |
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you pay goes toward building equity. As you pay off the mortgage, you owe less on the home and "own" a larger share of it. |
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| • Tax Advantages: Homeowners may deduct mortgage interest and property taxes as |
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an expense against income, while residential investors may write off cost recovery or depreciation. |
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| The decision to buy has as much to do with your personal needs as it does with the financial reasons that can motivate a buyer. Do the math to understand the monetary ramifications. Take time to understand your own motivations before you rush into this decision. Homeownership has its definite rewards. Pursue them with real knowledge! |
Need & Want Breakdown
Your goal becomes my mission so it is important that we are on the same page regarding the house that will become your home. The first step in the process takes you from the necessities you need in a home to the features you envision in your dream home.
Needs: These aspects include minimal amount of bedrooms, bathrooms, square footage, etc. These items are a must have when viewing homes and give the most general baselines in my criteria in choosing homes to show you.
Wants: These aspects are things you would like such as a kitchen island or a separate tub and bath; however, they are option features. The search for a home may include homes with some or all of the features allowing you to weigh their importance depending on the various home prices.
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Mortgage Qualification
The next part of the process is to determine the level of your qualification - how much house you can buy and what it will cost you a month. This is determined by evaluating five different things: Employment, Household Income, Money Down, Established Credit, and your Credit Score.
When we evaluate these five aspects of your situation, we will be able to determine the home you can buy. If for some reason, you do not qualify, Real Pro has a powerful process of education to resolve your challenges so that you can buy a home.
At this point, we’ll submit your application and issue a pre-qualification letter showing the purchase amount you are approved for.
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Home Search
Now for the fun part - looking for your home. Based on your need and wants list, I will search the MLS for homes that meet your criteria. We’ll put together a group of homes for you to review and select ones you want to see. We’ll schedule a time to go out and look at these homes.
You are also free to begin looking for homes you might be interested in. Through the MLS searches on this web site you can review properties throughout the area. Although your search will be more specific once we have completed your pre-qualification, feel free to check out what’s available.
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Writing an Offer, Negotiation, and Acceptance
Once you find the home you would like to buy, we’ll research the property thoroughly and meet with you to discuss an offer to the seller. We will then prepare your written offer including the price and other terms that are important to you. Along with this offer, you will put down earnest money, which convinces the seller of your seriousness.
The contract offer defines the relationship you will have with the seller in purchasing their home. It defines the purchase price, the timing of the contract, additional items included in the sale, etc. Although it can be complex, our job is to help you understand the important parts so you can make an offer that you are comfortable with.
Once your contract offer is submitted to the seller through their agent, they will have a set amount of time to respond (usually 24 -48 hours). There are three possible responses they might make: |
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1) If they accept our offer, we’ll be “in contract.” If the sellers accept our offer, then we perform to the contract by fulfilling our responsibilities and holding the sellers accountable for theirs. This includes doing certain things by the dates we defined in the contract such as inspecting the home, getting it appraised, etc. As your agent I will coordinate this process and keep you informed.
2) If they like some of our offer, but want to change some of it, they make a “counter offer” telling us what they want to change. If our contract is counter-offered, we will meet you and review the changes the seller has requested. If they are acceptable, you will sign the counter offer and we will be “in contract.” If the counter offer is not acceptable to you, your agent will contact the seller’s agent and negotiate on your behalf to determine a mutually agreeable solution which then be put in writing.
3) The last possible response is to simply say, “No,” which is uncommon. |
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Once you are “in contract” you have the right to purchase the home under the terms of the contract. The home is no longer “on the market” for other buyers. At the same time, you have the right to inspect the property and have it appraised before the deadlines we have agreed upon to make sure that you are buying the home you want.
At this point, the title company chosen by the sellers will research the property and determine if there are any issues in transferring the property from the seller to you. It is this title company that will conduct the closing process when ownership is actually transferred. You will likely receive in the mail a preliminary title commitment from the title company showing the results of their research. |
Inspection & Appraisal
Under the contract, you have the right to inspect the home by the Inspection deadline. If there is anything you find that you are not satisfied with, you can request the sellers fix it, credit you money to do so or you can withdraw from the contract completely and receive your earnest money back.
The point of an inspection is to receive a non-biased, professional opinion of the overall condition of the property making sure that none of the large issues such as roof, furnace, etc. are going to be problems when you own the home.
Real Pro recommends the use of a professional inspector who is knowledgeable with home construction and condition issues. This inspection is paid by you at the time of inspection and is well worth the small cost. We will be happy to refer you to property inspectors that we recommend.
After the property passes your inspection, it is time for an appraisal. An appraisal is a determination of value by a licensed appraiser who will visit and measure the home and compare it to other homes that have sold to determine its value. This is important to you and also to your lender, as both of you want to make sure you are buying a home that is worth its price. If the home does not “appraise”, we have solid evidence to renegotiate the purchase price with the seller or to exit the contract and receive your earnest money back.
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Closing
The day of closing is when everything comes together and the home becomes yours. Closing will likely be held at the title company’s office where you and the seller will sign the paperwork transferring ownership into your name. You will also be signing the lender’s paperwork which finalizes your loan. You will bring any down payment (if needed) in certified funds. You’ll also need your driver’s license or ID. I will be present to assist with any questions and insure that things go well.
When the closing is complete, you will receive the keys to your home. Congratulations!
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