Choose a Realtor
- Guide you through your home search and help find relevant inventory
- Advise you on pricing, contracts, and the transaction process
- Negotiate on your behalf, with your best interest in mind
- Communication style
- Industry knowledge
- Neighborhood expertise
- Disclosure, Confidentiality, Diligence
Home Buyers Guide
Frequently Asked Questions
What is a Buyer Representation Agreement?
A Buyer Representation Agreement is a contract between a homebuyer and a Realtor. It outlines the duties and responsibilities of both parties, ensuring that the agent works in the best interest of the buyer throughout the home-buying process.
Why do I need to sign a Buyer Representation Agreement before viewing homes?
Signing a Buyer Representation Agreement ensures that you have professional representation when viewing and purchasing homes. Due to recent changes in the MLS and legal requirements, this agreement must be in place to protect both the buyer and the agent.
How does compensation work for buyer agents?
Typically, the seller pays the commission for both the listing agent and the buyer’s agent. This means that as a buyer, you usually do not have to pay your agent directly. However, the specifics can vary, so it’s essential to discuss this with your Realtor upfront.
Can I work with other agents if I sign a Buyer Representation Agreement?
Once you sign a Buyer Representation Agreement, you are committed to working exclusively with that Realtor for the duration of the agreement. This ensures you receive consistent, focused representation.
How long does a Buyer Representation Agreement last?
The duration of the agreement is specified in the contract and can vary. It typically lasts for several months, but the exact term will be agreed upon between you and your Realtor.
What are my responsibilities under the Buyer Representation Agreement?
As a buyer, your responsibilities typically include providing accurate information to your agent, being available for home viewings, and notifying your agent of any changes in your buying criteria.
What happens if I find a home on my own?
If you find a home on your own, you should still inform your Realtor and allow them to assist you with the transaction. The agreement usually requires you to work exclusively with your agent, even if you find a property independently.
Can I negotiate the terms of the Buyer Representation Agreement?
Yes, many terms in the Buyer Representation Agreement are negotiable. You can discuss and modify aspects such as the duration of the agreement and the scope of services provided by your Realtor.
Can I work directly with the listing agent to buy a home?
While you can work directly with the listing agent, it’s important to remember that the listing agent represents the seller’s interests. This can lead to potential conflicts of interest and a lack of impartial advice. Having your own buyer’s agent ensures that your interests are prioritized and you receive expert guidance throughout the transaction.
What is a subagent in a real estate transaction?
A subagent is a cooperating agent who shows a property to a buyer but still represents the seller’s interests. If you are not represented by your own agent, the listing agent may become your subagent, providing assistance while still prioritizing the seller’s needs.
When You're Ready
Get Pre-approved
- Figure out how much cash you have for a down payment.
- Find out your credit score and whether you need to take action to remediate.
- Consider your lifestyle and how this purchase may impact your monthly budget.
- They will look at your credit, all accounts, income, and debt history to calculate what you can realistically afford.
Buying a Home? You May Qualify for the Legacy Buyer Program.
Work with Real Creative Group and our lending partner Tom Latta at Coastline Mortgage and you will receive up to $1,200 in combined credits toward your home purchase. We also make a $500 donation to the PBA Founders Fund scholarship in your name when you buy. No hoops. Just a better way to buy.
The Costs of Homeownership
to be prepared.
- Loan Application; Credit Report ($15–30*)
- Appraisal ($400–600*)
- Home inspection ($400–800*);
- Radon inspection ($100–250*);
- Termite inspection ($50–100*);
- Well & Septic inspection ($400–800*);
- Rough estimate is about 3% of the sales price. This includes recordation taxes,
title insurance, all lender fees and settlement charges.
- Repair and Maintenance Costs
Mortgage Loan Types
3.5% down
- Typically 30 year fixed rate
- Lower credit scores
- Homeowner occupant only
- Stringent home inspection
- May take longer to close
0 % down
- Typically 30 year fixed rate
- Veterans and spouses only
- Homeowner occupant only
- Home condition requirements
- May take longer to close
Find Your Dream Home
Understanding your motivation for the move will help keep you focused on your priorities.
- Understand home types and their pros and cons (Condos vs. Co-ops vs. Fee Simple)
- Make a list of your must haves and deal breakers
- Think about the type of neighborhood you see yourself in
- Anticipate how long you want to live in this home
- Communicate with your agent about your needs
- Be flexible and open to alternatives
Make an Offer & Negotiate
- Your Realtor® will pull a list of all the homes that recently sold to give you a better idea of the market.
- Is this a “Hot Home,” is it under-priced, are there other offers? The amount of competition will determine how aggressively you want to structure your initial offer.
- Make sure you speak with your agent about all terms of the contract and to understand deadlines, liabilities and clauses that allow you to terminate the
agreement, etc.
- Decide how much you’re comfortable putting down as an act of good faith. Typically the deposit will be held in escrow by the title company and subtracted from your balance at the end of the transaction.
- Depending on the jurisdiction, the EMD commonly ranges between 1–5% of the sales price.
Structuring an Offer
An offer can have a lower price than another, but still be stronger! For example, if a seller values moving out quickly, a lower all cash offer that closes in 3 weeks might be more attractive.Your agent will know the best strategy to make a compelling offer based on market conditions, while considering your needs and comfort level.
- Once you have submitted the offer, the seller may reject, accept or counter
your offer. - Be prepared to go back and forth until you reach a suitable agreement for both parties. When all terms are agreed upon, the offer is signed by both parties and officially ratified.
- Negotiations are not necessarily over at ratification of the contract. They can
also go on during the inspection and appraisal periods.
Terms of the Offer
Price is obviously an important factor, as it will determine how much the seller nets. Work with your agent to figure out the value of the home and how much you’re comfortable spending.
Contingencies are terms that need to be met in order for the contract to go to closing. The more contingencies, the higher the risk for the seller. By waiving a contingency, you strengthen your offer. However, you may be risking your EMD, as the contract may not protect you if such contingency is not met.
Considering the length of each term is very important when submitting an offer. Every day that a house is under contract, the home is essentially “off” the market. The seller is “taking a risk,” by waiting for each term to be met.
There are certain risks that come with accepting an offer where a mortgage loan is being borrowed as opposed to a purchaser using cash with their proof of funds provided.
Amount a seller is willing to credit back to a buyer to help with closing costs. Check with your lender for maximum % of sales price; asking for credit will often weaken the offer as it lowers the seller’s net sales price.
In highly competitive situations, buyers will conduct a pre-inspection prior to submitting an offer, and waive this contingency. However, if you do request a home inspection, aim to schedule it within 7 days of ratification.
Assessment of value conducted by the lender—usually conducted within 21 days of ratification. By waiving this contingency, you may be responsible for the difference between the appraised value and sales price, if the house is assessed at a lower value.
If your offer is contingent on financing, the sooner you receive a commitment letter from the lender, the more confidence you can instill in the seller that the deal will reach closing.
Under 30 days is ideal, but some loan programs take longer to close. The closing date is important, as this is when the seller receives the funds for the transfer of the deed.
*Please note that the closing date is not necessarily the same as possession date. In some cases, sellers may want to rent back the property for a period of time. Most lenders will allow for a 60 day Maximum Rent Back Period.
Inspections & Appraisals
- Home inspections can be nerve wracking, but they are an important part of the process. There are many types of inspections depending on the location and home you are looking to purchase.
- Take the time to attend the inspection so you can have a better sense of how the home works, see which areas will require maintenance, and assess whether you will need to consider home improvements down the line. Don’t be afraid to ask questions!
- Expect to have a list of items from your inspector in a couple days. Don’t panic! Every home has a list of potential repairs, and most will be minor.
- Home inspections are another opportunity to negotiate. Speak with your agent about what items they recommend asking for repair. Focus on the items that matter the most. Keep in mind that the seller is not obligated to make all the requested repairs, unless required by a lender (FHA, HPAP, VA etc.).
- This is the assessment of value on the home by a third party appraiser. It lets the lender know how much they will be able to lend for the home.
- Negotiate to bring price down to appraised value.
- Bring more money to settlement to make up the difference.
- Walk away, but you may lose your EMD.
- Congratulations, you have instant equity! Since the buyer pays for the appraisal, there is no reason to share this with the seller. Your agent will inform the other side that the appraisal met value and your lender will proceed to finalize the loan.
Settlement
During settlement, the title attorney will go through your final settlement statement, line by line.
The title company will be in charge of disbursing the funds to the seller and the
bank (if they still owe a balance on their mortgage).
Don’t forget your government-issued ID, cashier’s check or certified funds (if amount you owe isn’t wired to the title company prior to the settlement), and personal checkbook for any small last-minute expenses.
Make sure you receive all copies of the keys.
Once you’ve signed all the documents and the deed, you can officially call yourself the homeowner!