Buyer and Seller Tips
Home Purchasing Suggestions:
Start the loan process right now. Don’t wait until you find the PERFECT HOME. Most savvy buyers are ready – they know how much they qualify for and the best type of financing for them. Call or Email us for a list of great, local lenders.
1. Make a check list of all the things you want your home or property to have: for example, how many bedrooms, 2 story, ranch, in town – out of town/ acreage(year round access, electricity, phones). Get clear about what you really want and can afford. This will make the process enjoyable.
2. When you chose a NorthWest Group agent, you have hired a team of professionals that provide personalized services.
3. After you write an offer and it is accepted by the seller, you are on the way to home or land ownership. Remember: when you write an offer on a home or property, you must write an earnest money deposit check as well (1% of the purchase price is an average amount).
After the contract has been accepted, follow these steps:
a. First you will receive the “Sellers Property Disclosure”. This form covers the inclusion and condition of all mechanical components of the property.
b. The contract has specific dates for the inspection and negotiation of repairs. Most buyers hire a professional home inspector.
c. Title commitment for the property discloses all legal documents recorded against the property,such as Deed of Trust/loans, easements, etc.
d. Appraisal will be ordered by the lender.
e. The last step is loan approval. The lender will send all of your financial information and the appraisal (called the “loan package”) to the UNDERWRITER for final approval.
f. The day of closing you will need certified funds (bank check) for your down payment and closing costs.
Six Ways to Accumulate a Downpayment:
1. A Gift – The lender will ask for documentation to prove that money is actually a gift and not a loan. They have pre- printed forms for this purpose.
2. Borrow against an insurance policy or a retirement account.
You may have to pay taxes or penalties on the money, and the loan will count as a liability when applying for a mortgage.
3. Sell or borrow against an asset. Selling a car may provide enough cash for a downpayment.
4. Ask the seller to pay all or some of your closing costs. Your
realtor can assist you with this.
5. Ask the seller to carry back financing. This is effectively
asking the seller to loan you the downpayment. It is usually
repaid within 5 years.
6. Consider different loan programs. Some require only a small
percentage of the purchase price as a downpayment. The cost of some loans is less than the cost of others. Shop around and ask your realtor for recommendations.
Why Should You Buy a Home?
Making monthly mortgage payments results in “equity” in your property, that you can convert into cash when you sell or refinance.
Over time, homes significantly increase in value.
Great Tax Advantages
Interest on mortgage loans and real estate taxes are two
of the expenses that still qualify as income tax deductions.
Security and Satisfaction
Typically, housing costs are more stable with home ownership.
Owning a home is the American Dream.
This is a simplified checklist on purchasing property. Any of our Brokers would happy to sit down with you and outline YOUR needs and how the process can work for YOU.
The Colorado Real Estate Contract to Buy & Sell Real Estate was written by the Real Estate Commission. This contract outlines the process step by step from start to finish.
*Throughout this process, be in constant communications with your lender. They will need all of your financial information for the loan.
The FIVE key elements in selling:
1. The right price
Consider recent sales statistics on homes in you neighborhood, length of time on the market, listing price and actual sales price. This information is called a COMPARATIVE MARKET ANALYSIS. We will provide a FREE CMA.
We will assist in the “how-to” of preparing the home to sell. We can advise about where to best spend your money and get the most return $$.
3. Fix it
Buyers are happiest to move into a home that is in near
perfect condition. A well-maintained home will attract
the highest price. We have a checklist to help you
identify those details which need attention.
4. Identify exclusions
A buyer may have selected your home because of the stained glass window in the foyer that was made by your sister. Be sure to clearly specify anything that is “attached” that will not be included in the sale (or remove it before showing the home). We will assist in identifying those items.
5. Understand your agent’s agreement
Discuss marketing details with your agent. Be sure you
understand the time frame of the listing contract. Know the agent’s fee. We have the answers to your questions.
What a Realtor Can Do for You:
1. Set the asking price correctly. Don’t lose the first burst of enthusiasm when the ad appears in the newspaper.
2. Create an effective advertising plan. Handle all the phone calls, showings and open houses. Cooperate with other realtors.
3. Explain mortgage financing to prospective buyers.
4. Prequalify potential buyers.
5. Prepare a legally binding contract. Set deadlines for title insurance commitment, home inspection and repair of any faults, loan approval for the buyer, and appraisal of the property.
6. Successfully close the sale.