Whether you are a first-time home buyer or seasoned homeowner,

here are a few ways to prepare for your next move

1.   Find a reputable lender and get pre-approved:

It’s not wise to start home shopping before you know how much you can afford. A good lender will tell you how much you need for a down payment plus other closing costs and pre-payables (these are the fees associated with your loan and how much you will need for taxes, home owner’s insurance, and other prepaid expenses).    A lender can also advise you on different loan options and how to repair your credit (if necessary).

It is worth the time to get a pre- approval letter from your lender and not a pre-qualification letter. A pre-qualification is simply an overview of your financial history. A mortgage pre-approval starts there, but it usually requires documentation and verification of your income, assets, and debts.

And it will often require a credit check, which will result in a hard inquiry on your credit report.

Sellers prefer Buyers with a pre- approval letter.

2.   Create your list of “Must Have” vs “Nice to Have”

Before starting to look for your first home, make a list of those items that are truly must haves, such as room to park a boat, fences allowed, first floor laundry, etc. Know exactly what you’d be willing to live without and what you’d be willing to trade them for. Remember Location, Location, Location.

You can always paint & remodel, but you can’t change the location of your yard or house. Be ready to compromise. If you’re not willing to settle for anything less than your wish list…then you might have to increase your budget.

3.   Hire a buyer’s agent (at no cost to You)

An experienced agent will: a) help you with the lingo (contingencies, title, earnest money, assessed value vs. appraised value, etc.); b) provide opinions on price, market conditions and resale; c) work with your best interests in mind; d) help you get creative to win in a multiple offer situation

4.   Keep the timeline in mind

When do you want or need to move by? Typically, it takes 45-60 days from the day  your offer is accepted to the day you close (Move-in Day). But the entire process of looking for houses can add weeks, maybe months, depending on: how quickly you find the right house, how fast price negotiations go, inspections and financing and so on. Also, the current housing market (Buyer or Seller market) will make a difference in the number  of homes available for consideration.

5.   Consider selling your existing house first

You may have been through this process once or twice (or maybe more) before, but in a hectic Seller’s Market, sellers may not consider accepting a home sale contingency (waiting for you to sell your house). You may have better luck making an offer on a new house once you have an accepted offer on your existing house. This way, the seller knows you have a firm closing date and you can simultaneously close on both houses.

Bottom Line:

It’s never too early to prepare for your home purchase. Whether it’s saving for a down payment, investigating your mortgage loan options or checking out the homes online to see

what’s for sale…. we welcome the opportunity to meet with you to discuss these steps and make a plan to help you make your next move.

We’ve comprised a list of commonly asked questions from buyers!

BEFORE THE BUYING PROCESS

Should I talk to a lender first? It is very important to talk with a lender before looking at houses. A lender can help you understand exactly how much you can afford and explain what costs are associated with buying a home. These include your down payment, pre-paid items and closing costs. Also a lender will give you advice on the right financing for you.
Most importantly, you will need a pre approval letter to accompany any offer you make.
How long does it take to buy a house? Once you have an Accepted Offer (Contract) on a home – the closing date is typically 45-60 days from the accepted offer date. If you are paying cash, this timeline can be considerably shorter if the seller agrees to a quick closing date. Otherwise, during this time there are many things that need to be completed (depending on the contract) such as:
Home Inspection • Appraisal • Financing • Document preparation for closing
When should I start looking at homes? Do you have a lease? Do you want to be in before school starts? Is your family size changing? If so, then these are the dates you should keep in mind when you start looking for houses. You can start looking at houses on line at any time. This will give you a good idea of what type of houses are available in your price range. But if you have a lease for 6 more months, that home you fell in love with today most likely will not be around when it’s time for you to move. Depending on the number of houses available for sale that match your criteria – it may take weeks or months to find the right house.
Should I sell my current home before I buy another house? It all depends on your financial situation and if you feel comfortable with the potential of having two houses at one time (until you sell your current house). In a Seller’s Market however, many sellers will not consider a “home sale” contingency.
The biggest benefit to buying a house before you sell your current home is that you now have a suitable property lined up. This can reduce the stress and pressure of having to find a home once your current house is sold.
If you are unable to purchase a house without selling your current one first, your purchase has to be “contingent upon the sale and closing” of your current home. In this case, the seller can still market and sell his or her house looking for another offer to “bump” you and you can possibly lose out on the house you want.
Selling your current home before buying a new home Selling your house before you put an offer on another house puts you in a better negotiating position with the seller. You now know exactly what your house is worth (since you have an offer on your house) and you know when the closing date will be. This makes you a more viable buyer.
Do I really need a real estate agent when buying a house? There are many reasons as to why you should have a Buyer’s agent on your side when buying a home. It is especially important when it’s your first home. A Real Estate agent can do more than just show houses. A buyer’s agent will be your trusted guide to help you navigate through the jargon, the contracts, the timelines, the possible pitfalls and help you achieve your goal of owning a home.
Who pays the real estate agent fees? In most cases, the seller pays the fees for either a buyer’s agent or a seller’s agent.

WHILE HOUSE HUNTING

Can I call the agent on the sign to make an appointment? If you are working with a Buyer’s Agent and you are under contract, please do not call the listing agent (on the sign). It is never, ever a bother to call your Buyer’s Agent for more information…no matter how many times you’ve called or even for a simple question. Your agent can arrange the showing appointment.
What’s the neighborhood like? How are the Schools? There are guidelines and rules against “steering” and providing opinions/personal insights about specific areas and neighborhoods for real estate professionals. Today there are so many on line sites to provide statistics on local economy growth, school rankings, crime, taxes and amenities.
What are the average utility bills? It’s important to know the additional costs associated with owning a home. Utility bills can be obtained from the home owner or you can contact We-Energies for the high/low/average utility cost for the house. Keep in mind, if you’re buying a house from a family of 7 and you’re a family of 3 – your utility bills may be a bit different.
Can I build a garage, put up a fence…..? If the house has an active HOA (home owner’s association) there most likely will be a set of rules and restrictions to abide by. Be sure to read them if you want to park a boat outside during the summer, build an extra garage/shed or want to put up a fence for your pet. Also check with the municipality before you fall in love with the house.
What’s the age of the major mechanicals? It’s not uncommon to ask about the ages of specific items in the house. Most buyers want to know about the age of the roof, furnace, AC, windows and water heater. Some sellers may not have this information readily. Installation date tags may be visible on the furnace, AC and water heater. This is a good question to ask before looking at houses, it you don’t want a “fixer-up”.
How many homes should I look at before I put an offer on a house? There is no magic number. Don’t feel like you’re making a mistake if you want to buy the first home you look at…if it checks all the boxes and feels like home, then it’s the one.

WHEN MAKING AN OFFER TO PURCHASE

How much should I offer? Your real estate agent can provide value information as to what current homes are selling for in the neighborhood. Your offer should be based on the condition, location and desirability of the house for sale (and if there are multiple offers already on the table).
What is Earnest Money? Earnest Money is an amount 1-2% of the purchase price that the buyer writes into the Offer to Purchase. The Earnest Money is deposited in the Real Estate Broker Trust Account and subtracted from the final figure the buyer pays at closing. The primary purpose of Earnest Money is to show the seller you are serious about purchasing the home. In some cases, the higher the Earnest Money, the stronger the offer looks to a seller.
How long does the seller have to respond to my offer? The deadline of an offer can vary from 12 hours to 3 or 4 days. It depends on how the offer is structured. You may want to give the seller some time to respond if the seller is going to be out of town. If it is a new listing, you may want to shorten up that timeframe. However, if a seller is not going to accept your current terms, he or she does not have to respond during this time frame. They could respond right away or they may take a day or two past your deadline. The terms of your offer are only good through your deadline.
What if my offer is rejected? There are four possible outcomes when an offer is submitted to the seller: Acceptance, Counter Offer (or Multiple Counter), Rejection, or no response. If your offer is rejected, you have the option to place another offer (if seller hasn’t accepted a different offer).
Can I find out what the other buyer offered? Unfortunately, it is against the law for real estate agents to share any details of an offer with someone not party to that offer. The listing broker cannot violate the duty of confidentiality to the first buyer. The buyer expects his offer terms to be confidential because the duty of confidentiality applies to all parties to a transaction. With the seller’s permission, the listing agent may disclose the existence of a bump clause (a home sale contingency).
What inspections can I ask for? Most buyers ask for a Home Inspection contingency. This is a period of 7-14 days for the buyer to have a licensed home inspector visually inspect the premises. This is a cost of approximately $400 – $600 that the buyer pays.
Testing is independent of Inspection. Any Radon, Mold, Asbestos, etc must be included in the Offer to Purchase and agreed upon by the seller.
Typically, it is the seller’s responsibility to conduct and pay for the water/well and septic inspections.

YOUR OFFER WAS ACCEPTED! WOOHOO!

Now what? Between contract acceptance and closing, there are many things that need to be completed…financing, appraisal, inspections, title and closing paperwork to name a few. We provide a closing date checklist and make sure all duties, dates/deadlines and contingencies are met ensuring a smooth and successful closing.
BOTTOM LINE:
These are just a few of the many, many questions you will have before, during and after the home buying process. We are always available to answer any questions or concerns you may have. It’s never a bother to us.

What is a Buyer’s Agent? In the traditional buying process: a real estate agent working with a buyer WITHOUT a Buyer’s Agency contract, is by law, working as an agent of the seller. An agent working without a Buyer’s Agency contract must still be fair/ethical/honest in his/her dealings with buyers, but is prohibited BY LAW from giving the buyer critical advice such as a professional opinion of price or suggesting  negotiation strategies.

WHAT’S THE DIFFERENCE? Buyers’ Agents are legally bound to help buyers, whereas listing agents (Sellers’ Agents) representing the home listing, have a financial (fiduciary) duty to the Home Seller. A Listing Agent CAN NOT represent the buyer. The Listing Agent can’t have the Buyer’s best interest at heart while representing the Seller.

For example: you attend an Open House and tell the Listing Agent (Seller’s Agent) how

much you love the home and want to buy it, but your lease is up in a month and really

have to move. A Seller’s Agent could tell the seller your clock is ticking so they shouldn’t

budge on price.  You lose your negotiating power.         A Buyer’s Agent would know to

keep this info private from the Sellers and the Sellers’ Agent so it couldn’t be used to compromise your negotiating position.

BUYING A HOME CAN BE COMPLEX AND STRESSFUL:

The business of buying a home is complicated, filled with paperwork, legal contracts, contingencies, financial obligations; it requires expert negotiations and problem solving. Often times, when small problems arise, if left undetected or mishandled, these can  easily blow up and put your transaction in jeopardy. As your experienced Buyer’s Agents, we will be your guide throughout the home-buying process and be at your disposal for any questions or concerns.

THE AGENT/BUYER CONTRACT:

Once you agree to work with an agent, you will have to sign a contract called Buyer Agency Representation Agreement, which outlines the Agent’s responsibilities and compensation. This contract also means that this agent will be your sole representative and that you won’t work with any other agents.

WHAT DOES IT COST?

Home buyers don’t need to worry about the expense of hiring a Buyer’s Agent. The

 Seller pays the commission at closing for either a Seller’s Agent or Buyer’s Agent. And

we don’t charge for the service of Buyer’s Agency.

BENEFITS OF USING A BUYER’S AGENT:

HOW TO FIND THE RIGHT BUYER’S AGENT:

A good buyer’s agent can ease your way to homeownership. You might believe you don’t need to hire your own agent…well at least until something unexpected pops up. Here are a few questions to ask:

Are  they familiar with  the  area and  neighboring home, single family and  the  intricacies  of Condo associations? YES WE ARE!

How Experienced are they in competing in today’s competitive market place? We

have 20+ years successfully negotiating and winning bids in today’s market.

What’s their schedule and availability? We are FULL TIME and available at your convenience.

Are they able to overcome setbacks and do they have a list of preferred professionals to help solve any problems that arise during the

inspection or appraisal (or anytime during  the  period  of the contract)? We are problem solvers! You can feel confident that as your Buyer’s Agents, we have the resources and ability to find a solution quickly to protect your earnest money and get you to closing.

MLS: The Multiple Listing Service. This is where the inventory of homes for sale, with offers or sold are listed by real estate agents. We send out new listing alerts from FLEXMLS.

Real Estate Agent or Realtor: The word Realtor is a trademark referring to someone who’s an active member of the National Association of Realtors (NAR) and abides by Its Code of Ethics.  A real estate agent is licensed to help consumers buy and sell property. But not all real estate agents are Realtors

Buyer’s Agent: A real estate agent under contract with a buyer to represent the buyer during the home buying process

Seller’s Agent: A real estate agent that represents the seller in a home buying transaction

Listing Agent: A real estate agent under contract with a seller to list and sell a house. Listing Agent can not be a Buyer’s Agent.

Pre Qualification: This is based on only limited information provided to a lender. It’s usually a quick process that doesn’t even require meeting with the lender or a review of your credit report.

Pre Approval: A more complex process that requires submitting a formal loan application and providing extensive documentation regarding your financial situation to a lender. Sellers prefer pre approval letters.

Offer to Purchase: Becomes a contract as soon as both parties mutually agree to all terms, sign and deliver signed documents as per the delivery dates on the Offer to Purchase. Buyers can only make one Offer on a house at a time. A Seller can look at multiple offers at one time.

Real estate Transaction: From offer to closing. A real estate transaction is the process whereby rights in a unit of property (or designated real estate) is transferred between two or more parties, e.g. in case of conveyance one party being the seller(s) and the other being the buyer(s).

Counter Offer: This is generated by a party to the Offer to Purchase where one or more terms aren’t agreeable. A counteroffer revises the initial offer and makes it more desirable for the person making the new offer. This type of offer permits a person to decline a previous offer and allows negotiations to continue. Be aware: during counter offer stage:  Seller can accept  another Offer during this time.

Multiple Counter Offer: This is actually called a Multiple Counter Proposal. It allows the Seller  to make counter offers to multiple buyers at the same time. Multiple Buyers can accept the proposal. It then becomes an accepted offer once the SELLER selects and signs only one of the buyer’s signed proposals.

Binding Acceptance: In general, an offer becomes a contract when both parties have signed an identical offer and have made delivery per the contract by a specified date.

Amendment: Both parties must mutually agree to change one of the original terms of an offer with the use of an Amendment. Such as closing date, contingency date extension, price, etc.

Real Estate Condition Report: A Seller form to disclose any defects that seller is aware of. This list of defects (if any) should be taken into account when making an offer.

Earnest Money: Deposit made to a seller showing the buyer’s good faith in a transaction. Typically held in a trust or escrow account. This is credited back to the Buyer at closing on the closing statement

Contingencies: A condition or action that must be completed/satisfied by a certain date before the sale of home can close. Home Inspection, Appraisal, Financing, etc

Closing Date: The Date the buyer and seller agree to close on the sale of the house and all contingencies have been met. “MOVE IN” Day.

HOA: A Home Owner’s Association is an organization that makes and enforces rules for the properties within the Subdivision. These types of properties may have HOA fees associated with them. These fees are typically used to maintain the common areas such as roads, parks, out lots etc. Active HOA’s have restrictions and rules.

Condo Docs: A variety of documents which establish a condominium and regulate living in a condo community with certain rules & restrictions.

Assessment (Assessed Value): This is the dollar value assigned to a property to measure applicable taxes for the municipality. Assessed valuation determines the value of a residence for tax purposes.

Appraisal (Appraised Value): This is an evaluation of a property’s value based on a given point in time completed by a licensed appraiser. Typically, an appraisal is done during the mortgage origination process and ordered by the Buyer’s lender.

CMA (Comparative Market Analysis): This is a valuation based on similar, recently sold  homes (called comparable’s or “Comps”) in the same neighborhood. A CMA is not the same as an Appraisal which is performed by a licensed appraiser.

DOM: Days on Market. This is the total days from the date the house was first listed for sale.

Escrow: In some parts of the country – home sale closings happen in “escrow”. That does not happen here.  Escrow in Wisconsin means that money is held at the Trust Company after  closing for items that will be taken care of past closing. For example, a roof will be replaced and paid for after closing.

Title (Title Insurance): Declares who has legal ownership and the right to use a piece of property. A Title company does a search to make sure there are no additional liens or other issues that would cause a delay in conveying clear title to the property.

Deed: A property deed is a written and signed legal instrument that is used to transfer ownership of real property from the old owner (the grantor) to the new owner (the grantee)

Closing Cost Credit: A closing cost credit is simply money given from a seller to

a buyer at closing (or vice versa). A closing cost credit allows a buyer to avoid using their own cash. By having a seller pay for closing costs it allows a buyer not to deplete their funds

when buying a home.

Home Inspection: The examination of the property’s condition performed by a licensed home inspector.