Looking for a new home is an exciting, but sometimes uncertain time. Whether you are a first time home buyer, moving to a new city, upsizing, or downsizing, the process can be intimidating. This is especially true if you are trying to buy in a tight market. The good news is that you don’t have to go through this process alone. You can lean on an experienced Realtor. This person will do so much to help you land your home. You probably won’t even realize all that they are doing behind the scenes. Here is a look at the 10 most important things a Realtor does for home buyers
1. Initial Consultation
Everything starts with an initial consultation. However, this is not only a time to get to know one another. The Realtor will come ready to educate the buyer on the process and the order that their home search and purchase should follow. Here are some of the main points that your Realtor will be ready to discuss.
Buyers need to get pre-approved before seriously looking at homes. Know that there is a difference between pre-qualified and pre-approved. Pre-qualified means that the lender has relied on information provided by the buyer to estimate the maximum amount they can borrow. Pre-approved means that the lender has verified those numbers and can determine exactly how much the borrower can afford.
The Current State of the Real Estate Market
It’s important to have realistic expectations. Learning about the current state of the real estate market in Colorado Springs will help you be prepared for competition and the reality that you may need to bring extra money to closing.
The Realtor will explain the agency agreement as well as the various types of relationship types that a buyer and Realtor can have. These include agency, transaction broker, and customer.
Out of Pocket Expenses
It’s important to discuss out of pocket expenses. Buyers need more money in addition to the mortgage. The Realtor will explain earnest money, inspection fees, appraisal cost, and any other items buyers should know about.
Identify Broad Criteria of Perfect Home
Along with the Realtor, buyers will identify the ideal location as well as “must-haves” and “deal-breakers.” Through getting to know the buyer and their desired criteria, a Realtor can start making suggestions for homes. The Realtor will consider neighborhoods, age of homes, floorplan, yard size, and architectural style, among other criteria.
2. Start Home Search
The home search is the exciting part and a time when the Realtor is hard at work. The Realtor will start searching with a broad spectrum and then narrow the search as time goes on. It’s important that the buyers get notifications of new listings that meet their criteria. Using an updated website with accurate information, like Best CS Homes, is very important. In addition, it’s important to be able to easily communicate with the Realtor.
When a home looks promising, the Realtor will work to schedule a tour. While at the home, the Realtor will look for defects that buyers may not be aware of. These include foundation and water issues. Keep in mind that this doesn’t take the place of a home inspection. However, finding a major issue prior to making an offer and going under contract can save time and money. You don’t want any hiccups in a tight market.
3. Making an Offer and Getting it Accepted
It’s crucial to put your best foot forward when making an offer on a home. A Realtor will know the state of the market and have advice for putting forth an offer a seller is likely to accept.
4. Scheduling the Home Inspections
Home inspections are extremely important before going through with a home purchase. A professional home inspector will look for any defects that may need attention. If anything of note is found during a home inspection, your Realtor can help you negotiate the repairs with the seller.
5. HOA Documents and Disclosures
All buyers need to look at HOA documents and all disclosures and understand them. This may be hard to do alone, but a Realtor can help. For instance, if you want to be able to park a large RV on your property or build a shed, it’s important to understand if this is feasible and any possible limitations. The Realtor will help buyers understand any covenants that pertain to the property and help explain them.
6. Address Inspection Report
If the home inspector finds any concerns, the Realtor can help you address them. Keep in mind that in some cases, the inspection may reveal deal breakers. In this case, your Realtor can help you abandon the sale. Otherwise, the Realtor can help you draft your inspection objection report before the objection deadline. Within this document, the buyer identifies to the seller the items that either need to be fixed or addressed.
7. Negotiate Inspection Resolution
After the inspection objection report is sent over, negotiations can begin. Your Realtor will work hard on your behalf to find the best solution. Emotions can often run high during this process. Therefore, working with an experienced, calm, and collected Realtor will yield the best results.
8. Review the Title Commitment
The title commitment includes a lot of information and can be difficult to understand. As such, it includes the title company’s commitment to provide title insurance. It also contains an explanation of terms, conditions, requirements, exclusions, and exceptions. In addition, it points out any requirements that need to be taken care of before closing so that the title policy can be issued.
9. Negotiate any Appraisal Issues
The home appraisal often occurs after inspection related negotiations have finished. Negotiations can reopen if any new discoveries are made about the condition of the home, or if the appraisal fails to match the sales price. This assumes that the sales agreement allows for negotiations for these specific contingencies.
10. Ensure Buyer is Satisfied with Inspection Resolution Items
Once all inspection resolution items have been completed, the Realtor will ensure the buyers are satisfied with the work. If the buyer is unsatisfied, the Realtor will go back to the sellers to work out a solution.
Working with an experienced, thorough Realtor who is a good communicator is essential during the home buying process. It’s stressful to navigate the process alone. Realtors understand this process well. This experience will help to protect the buyer and come out with the best deal possible.