First-Time Home Buyers

Call today for information on the $8,000 tax credit passed as part of the 2009 Stimulus Package. Information can also be found on the National Association of Home Builders website.

Buying your first home is a major financial and lifestyle decision. The home buying process can be intimidating, but an experienced Buyer’s Agent can guide you through the process to make the home buying process as painless and stress-free as possible. While such a major decision can never be totally stress-free, I’m here to lower the stress levels.

  
How do you know you are ready to move from renting to owning? One of the largest deciding factors is money. You need to make sure you have the financial means to not only pay the monthly expenses or owning a home but also the unexpected expenses. Remember you are your own landlord!! Wanting to own your own home is more than a financial decision ~ it’s also a feeling. Are you tired of paying someone else’s mortgage? Are you ready to begin the American Dream? Are you comfortable in your town and expect to not have to move towns for some time? Do you want the freedom to paint or decorate how you want or maintain a garden? Buying a home might be right for you! Keep reading…

 Who is Involved in a Real Estate Transaction?:

·         A Seller

·         A Buyer

·         A Listing Agent that represents the Seller

·         A Buyer’s Agent that represents the Buyer

·         An attorney representing the Seller

·         An attorney representing the Buyer

·         A lender to provide financing for the Buyer

·         A home inspector hired by the Buyer

·         An appraiser

·         Insurance agent to provide homeowners’ insurance for the buyer

What is a Buyer’s Agent?

·         Most buyers prefer to be represented by a Buyer’s Agent. A Buyer’s Agent is a real estate professional (often times with the added REALTOR® designation). I am a REALTOR®, and I can represent you in a real estate transaction.

·         As your Buyer’s Agent, I have the knowledge of the real estate market, price trends, neighborhood amenities, real estate law, zoning issues, homeowners’ insurance, property taxes, financing options, negotiating skills and the stresses that come along with buying a home.

·         Any time you have questions or concerns, I should be available by phone or email to answer your questions or direct you to someone who could answer your questions.

Home Buying Process:

1.      In the first meeting with me, I will determine your needs and wants in a home, your timeframe, help you get pre-approved and explain the home buying process.

2.      I will explain Agency and present the buyer with the Agency brochure.

3.      I will explain what services I provide to the buyer.

4.      If the Buyer agrees to be represented by me, the buyer will sign the Buyer Agency Agreement.

5.      Conduct the Consultation Questionnaire (where your needs and wants are determined).

6.      I will set expectations for the buying process and explain the way a closing should work as far as timelines are concerned.

7.      I will schedule and accompany you to all showings. I will point out the benefits of the homes you see along with any areas of concern.

8.      Once you are ready to write an offer, I will guide you through the paperwork and negotiations. I will also need an earnest money check and your pre-approval letter to submit with the offer.

9.      Once your offer is accepted, your earnest money check will be deposited into my company’s trust account and held there until closing. You will need to select an attorney to represent you in the closing and decide on a home inspector and/or home warranty provider.

10. I will make sure the transaction progresses to closing.

a.      I will make sure disclosures are received.

b.      I will schedule the home inspection, fax paperwork to the lender and fax paperwork to the attorney.

c.       Once the inspection is completed, we will review the inspection report and decide what, if any, issues need to be addressed by the seller. The seller is only required to correct structural issues… air conditioning system, heating system, plumbing and electrical system and make sure the roof is free of leaks. We can ask about cosmetic issues, but the seller is not required by the contract to correct cosmetic issues. We must notify the seller within 48 hours of the inspection date.

d.     I will make sure the attorney has ordered the termite inspection. If there is a transferable termite bond, I will obtain the information needed to make that transfer.

e.      I will verify that the lender has ordered the appraisal.

f.        I will make sure the attorney has ordered the title work.

g.      I will make sure the closing package gets to the attorney on time for closing.

h.      If requested, we will walk-through the property the day prior to closing.

i.        I will attend the closing and make sure you receive keys to the property.

j.        As a permanent resident, you will receive tax breaks on your property taxes and I will explain the tax rate for permanent residents and what you need to do to get that tax break.

11. I will be in constant contact with you, the listing agent, your attorney, your lender and your inspector.

Common Missteps First-time Home Buyers Should Avoid:

·     Not knowing the local market ~ What is going on in other markets and what you hear on the news is not necessarily what is happening in Myrtle Beach.

·     Failing to get pre-approved ~ Getting pre-approved is one of the most important steps in purchasing a home. Get the pre-approval letter in writing. Once you have the pre-approval letter, you will know how much you can afford and spend on a home. Plus, your pre-approval letter will be presented to the seller with your offer. Your offer will be strengthened.

·     Low-balling ~ The seller is not obligated to accept or counter your offer. If you offer a very low price or have too many contingencies, you run the risk of insulting the seller. I know everyone wants a good deal, but I can help you determine a fair market price based on past sales and current market conditions.

·     Pay too much ~ In a hot market, you could find yourself in a multiple-offer or “bidding war.” If this happens, put your best offer forward and try not to get emotionally attached to the house. It’s better to lose the house than pay too much!

If you feel you are at the place in your life where owning makes more sense than renting, start informing yourself on the home buying process to avoid mistakes. You can find a great deal on information in other sections of my website. You can call me at (843) 267-2710 or send an email to Kathy@KathyRukat.com.

If you have any questions, I also have a PowerPoint presentation for First-time Home Buyers if you would like me to email that to you.