BUYER'S DIRECTORY

Buyers

BUYER'S SERVICES

AGENT SERVICES

LOAN APPROVAL SERVICES

Buyers Sellers Agents Lenders

The 12-STEP PURCHASE PLAN is a basic guideline for a successful purchase transaction:

1ST = OFFICIAL PRE-APPROVAL:

Getting official LENDER PRE-APPROVAL for your new home, includes a 2-Year history of all of your Income, Assets and Credit these items will be evaluated to determine the amount that you can afford for a home.

By this you should already know:

   

(a) What you can AFFORD.
(b) What your MONTHLY PAYMENTS will be.
(c) In what community / area you want to buy;
(d) Your offer will be TAKEN SERIOUSLY
when you follow all the steps required to purchase a home.

Once any Seller knows that you can 'IN FACT' purchase their home (if you wanted too); They (if serious about Selling) would be glad to entertain you, knowing that they would not be waisting their time with a Buyer that loved their property, but can't afford to purchase it. NOTE: Many BUYER'S AGENTS (if also a Broker) can also assist you in your home financing transaction through their wholesale lender accounts.

2ND = BUYER'S AGENT SERVICE'S:

 
Now that the search is on, it's time to get a Buyer's Agent to represent you in negotiating your purchase home transaction. The benefits of a Buyer's Agent are:

A = AUTOMATIC EMAIL ALERTS - your agent will do a MLS (Multiple Listing Service) search with your specific criteria (3 Bedrooms, 2 Baths in San Diego, etc,). Once these properties appear 'FOR SALE' they will be sent directly to your EMAIL, they will include (pictures of the property, the address, condition and terms of purchase). If you like the property, you can arrange for a viewing with your Buyer's Agent.

B = BUYERS AGENT- a BUYERS AGENT is a Licensed Real Estate Professional that REPRESENTS YOUR BEST INTEREST in a purchase transaction. Remember, the SELLER'S AGENT represents the Seller, but would be glad to take you along for the ride. A BUYERS AGENT requires loyalty and a fiduciary relationship, the SELLER'S AGENT is not required to have this relationship with the Buyer - their loyalty is to the Seller.

C = COST FOR A BUYERS AGENT IS $0.00 - a BUYERS AGENT, not only represents and negotiate the best purchase deal for you, but are 100% loyal to your need. From a legal stand point, hiring a BUYER'S AGENT helps to calm many fears of Caveat Emptor, also known as BUYER'S BEWARE, where the Buyer could NOT recover from Sellers Defects on the Sale of a Property. Liability is always an issue, that's why is so vital to hire a Professional Licensed Buyer's Agent.

3RD = THE SELLERS OR THE LENDERS MOTIVATION?

 

When you find a HOME it will owned by either a SELLER or a LENDER determining their BOTTOM LINE PRICE is vital, knowing that their motivation is to get the maximum amount possible. If you do not have a Buyer's Agent this is virtually impossible to do, the result will be paying the maximum amount, that's why a Buyer's Agent is vital: Agents can share information between each other, where they cannot do directly with the Buyer, because of their fiduciary duty that the Seller's Agent has with their Sellers, or to themselves (Lender) if owned by a bank.

This is known as Broker to Broker or Agent to Agent Communications and totally excludes unlicensed Buyers, because of this authority the Seller's Agent's can communicate the BOTTOM LINE PRICE & TERMS with a Buyer's Agent and reveal the Seller's true motivations.

4TH = DETERMINING THE CURRENT MARKET VALUE:

   

A = APPRAISERS = have authority to create Appraisal Reports,
B = BROKERS = have the authority to create Comparison Market Analysis Reports.
Verifying the MARKET VALUE is vital to purchasing a property. Before an offer is written your BUYER'S AGENT should have a pretty good idea of how much the property is worth.

If you are relying on the Seller's Agent to determine what the property is worth, you may be in for a big surprise. Most Sellers believe their home is worth more than any other comparable homes that have sold on their same block. Although we would all like to believe that our home is worth more than our neighbors, even with the same or similar features, but comparatively (and objectively) it is not.

NOTE: Many Seller's Agents will NOT get a Listing ('For Sale') unless they price the Sellers home on the market at the price the Seller request, (this is not considered Market Value, it is considered the Seller's belief).

This is why having a BUYER'S AGENT objectively research the homes value and create a COMPARISON MARKET ANALYSIS REPORT is so important; You have your own BUYER'S AGENT working towards your BEST INTEREST and not going along for the ride or siding with the Sellers beliefs can literally save you THOUSANDS OF DOLLARS.

IF YOU ARE WORKING WITH A SELLERS AGENT IN A PURCHASE OF A HOME - STOP - READ THE ABOVE AND RECONSIDER YOUR BEST INTEREST!!!

NOTE: Do NOT attempt to order an Appraisal before your OFFER TO PURCHASE is ACCEPTED by the Seller THIS IS ALL AT THE BUYERS EXPENSE and can be very costly unless you have assurance that your offer has been accepted.

5TH = WRITING THE PURCHASE OFFER:

 

Your BUYERS AGENT will WRITE YOUR PURCHASE OFFER and include certain legal CONTINGENCIES of Sellers Performance into the Purchase, they will work out the time allotted to close, the terms of the contract agreement and help to complete all of the required state disclosures conditions in the transaction.

All PURCHASE OFFERS written require a EARNEST MONEY DEPOSIT or a DOWN PAYMENT in holding (in Escrow or to your Buyer's Agent), this amount can be from 3.5% or 10% of the total purchase.

 

Bullet 3.5% if you are purchasing FHA, with a 2.25% Up Front Mortgage Insurance Premium; Down Payment funds can be gifted [with no repayment required], but cannot be borrowed, and

Bullet 10% if you are purchasing Conventional, with Mortgage Insurance (MI) included in your monthly payment, until you own 20% equity in your property.

If the Seller accepts your Purchase Offer, then your EARNEST MONEY DEPOSIT will be used towards your DOWN PAYMENT or CLOSING COSTS and at the CLOSE OF ESCROW will be transferred to the Seller.

NOTE: You must have all the FUNDS TO CLOSE before ever attempting to present an offer to a Seller.

6TH = PRESENTING YOUR PURCHASE OFFER TO THE SELLER:

The "CALIFORNIA PURCHASE CONTRACT" is a multi-paged contract having many responsibilities and liabilities, if breached. Your BUYER'S AGENT can help to explain this contract to you in detail. Meanwhile, upon presenting your offer to purchase the Seller has Three "3 CHOICES", they can:

   

Bullet Acceptance of your offer,

Bullet Countering your offer,

Bullet Rejecting your offer.

7TH = WAITING FOR THE SELLERS RESPONSE:

  (a) If the Sellers 'Accept Your Offer' you have a home.
(b) If the Sellers 'Counters Your Offer' it will be either on the Price or Terms.
(c) If the Sellers 'Rejects Your Offer' it may be for a variety of reasons.

Some of the reasons could include the following:

Bullet They may have received a better offer and accepted that instead of yours,
Bullet They may not have liked any of the Price or Terms that were listed on your Purchase Offer, or
Bullet They may have had a total change of plans in Selling their property and want to take their property off of the market.

   
If the Seller agrees to all the terms set forth in the contract they will sign your agreement and return it to your BUYERS AGENT who will inform you of the next steps to be taken below.

8TH = OPENING ESCROW AFTER YOU RECEIVE AN ACCEPTED OFFER:

   

All parties must agree on a 'ESCROW PROVIDER COMPANY' to handle further conditions in the Purchase Transaction. Your 'PURCHASE MONEY DEPOSIT' is now put into the hands of the 'ESCROW OFFICER' for safe holding until your Purchase Transaction is funded an Moines are disbursed to appropriate parties.

9TH = DISCLOSE, INSPECT & PASS CONTINGENCIES:

This is a set limited time period that you will have to complete all purchase requirements. It includes, but is not limited to financing, inspections and/or any other contingencies that may be set in place by the Buyer or Seller. Contingencies are subject to the close of your home, if all required contingencies are not met your home will not close as planned.

Contingencies include clauses and requirements such as:

 
   

Bullet Approval of the Seller's TDS,

Bullet Approval of the Preliminary Report (Prelim),

BulletAppraisals and Loan Approvals (if required),

BulletInspection and certifications.

10TH = VERIFYING THE LOAN APPROVAL WITH THE LENDER / AGENT:

   
The Loan verification process is vitally important, we want to make sure that all loan contingencies are completed with in the time period allotted by law. We work closely with the Agent and Lender to verify the process is smooth.

11TH = VERIFY DOWN PAYMENT & FUNDS TO CLOSE:

 
Down payment funds, must be liquid funds either in a money order or cashier's check, these funds must be prepared and ready to give before the Close of Escrow. The type of loan you get will determine how much you will need for your down payment.

12TH = CLOSING:

   
After all the conditions and contingencies have been met, you will be ready to close. You will meet with your Escrow Officer and sign all of your loan documentation's and closing papers. At that time the close will occur and the new deed will be recorded and you will take ownership of your new home.

To find out more about what you need to do to close your next purchase transaction or further details in each step contact us below with your request.

 

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Copyright February 2, 2000.
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