Home Buying Guide

By:Carmen VilarReal Estate Agent

 To be a homeowner, you will have to work and be ready for many obligations. Finding the right home IS work. You need TIME and DEDICATION to search, tour, and plan the purchase. You need to be FINANCIALLY able (having the funds and/or be pre-approved by a lender) Once you find the right property, then making an offer, going thru the closing process, closing, sometimes fixing or making the property ready for you, and moving in.ARE YOU READY? Home Buying Guide © Carmen Vilar

Location Define the city or areas where you want to live. If a School is a priority, search homes in that area. If working or anything in your life makes it important to be within a determined distance, make sure you have those parameters clear.FINDING A HOME Home Buying Guide © Carmen Vilar

Price Define the lowest and highest values Define your monthly payments If you are getting finance, get pre-approved by the lender. (Get a Pre-Approval letter.) Know about your Credit Report and Score Income verification Residence history Proof of funds (if paying cash or for down payment)FINDING A HOME Home Buying Guide © Carmen Vilar

Time When do you need to move? Are you Do you own? renting?When is your Is your landlord Do you need to lease up? flexible with sell your current time? home?FINDING A HOME Home Buying Guide © Carmen Vilar

Property TypeSingle Family Townhouse Home CondoFINDING A HOME Home Buying Guide © Carmen Vilar

 Square Footage Criteria # of Bedrooms # of Bathrooms  Patio/Yard Office  Parking Breakfast Area  Garage Dining Room  # of Stories Pool  Special Needs  Pets  In a Community (maintenance fees)SINGLE FAMILY HOME Home Buying Guide © Carmen Vilar

 Square Footage  What floor Washer-dryer  # parking spaces Elevator  Valet Special needs  Amenities Pet restrictions  Maintenance fee (range) Rental restrictions  Services included in Age restriction maintenance fee  ViewCONDOMINIUM Home Buying Guide © Carmen Vilar

 Do you want a move-in ready property?  A property that you can fix to your own taste and desire?CONDITIONS Home Buying Guide © Carmen Vilar

Search properties and plan showingsWhat Prepare a Comparative Market Analysisto Advice on price – Write Offersexpectfrom Negotiate with seller (price, terms, repairs, etc.)youragent Coordinate inspectors and services (appraisal, survey, termite inspector, etc.) HOA/Condo Application/Interview/Approval Coordinate with title companies Schedule closing Home Buying Guide © Carmen VilarA BUYER’S AGENT

 Make sure you write your comments about each property After you see a few houses, you will feel confused about “which has what?” If you take notes, you will be very clear and can go for a second visit or make a decision about writing an offer.TOURING/SHOWING PROPERTIES Home Buying Guide © Carmen Vilar

In today’s market, you have a few options:Regular Listed Short Sales Homes MLS or FSBO REO Auctions(Bank Owned)DECIDING ABOUT THE TYPE OFPURCHASE Home Buying Guide © Carmen Vilar

 A short sale is a home that someone is trying to sell for less than the mortgage amount that they owe. It requires the bank approval to sell. If there are several mortgages, then several approvals are needed. Any lien holder will need to give approval (government taxes, condominium associations, etc.)SHORT SALES Home Buying Guide © Carmen Vilar

 Short Sales can take a long time (sometimes about 120 days), though much shorter than it used to be. A Short sale can be unpredictable. It can be cancelled. The bank can determine to foreclose. The seller can present bankruptcy and end the short saleSHORT SALES Home Buying Guide © Carmen Vilar

 Most of the time we refer to Bank Owned properties Many REO are in MLS or for Auction. Some properties need major repairs Some sellers don’t allow inspections. Properties sold “AS-IS” Sometimes it takes longer to close Deadlines for offers and multiple Offers to compete withREO(REAL ESTATE OWNED) Home Buying Guide © Carmen Vilar

 You can’t always visit the property Many properties are occupied and you will have to evict the people. You don’t see the condition Very rarely you can get a mortgage (maybe a Hard Money Loan) There is usually a premium above the auction price. You have to research to make sure the property title is clean and there are no other liens.AUCTIONS Home Buying Guide © Carmen Vilar

Once you find the property, you are ready to make an offer. •Your realtor will provide a COMPARABLE MARKET ANALYSIS (CMA) •Be ready to determine price of the offer, terms, and escrow deposit. •Provide: copy of I.D.s, Letter of Mortgage Pre-Approval, and/or proof of funds. •There might be more negotiations, Multiple Offers, or delays. •Most offer are presented in Purchase and Sale Agreement •Be aware of some of the items in the contract •You can consult a Real Estate Attorney for more information or any legal concerns.DECIDING ON AN OFFER Home Buying Guide © Carmen Vilar

The purchase and sale agreement states the final saleprice and all terms of the purchase, such as:- Final Price- Earnest Money Deposit- Title Co or Escrow Agent holding the deposit- Contingencies: - Inspection - Survey - Title - Appraisal - Home Sale - Finance/Mortgage- AddendumsPURCHASE AND SALEAGREEMENT Home Buying Guide © Carmen Vilar

A lowball offer is one that is drastically below asking price.The risks of a lowball offers are:- The seller may be insulted and refuse to do any further negotiation- The seller may not take the buyer seriously- The seller may have financial restrictions- The seller may be in denial, even if your offer is dramatically lower than asking price, but fair according to market value.Your agent is the best person to find out how low can beacceptable and how to maintain the negotiation rolling.LOWBALL OFFERS Home Buying Guide © Carmen Vilar

WHY? WHAT TO DO? Lowballs Don’t take it personally Re-evaluate your Bidding Wars strategy Keep looking Specific terms (long closing, financing issues –some sellers Don’t get desperatedon’t want to deal with financed Widen your options deals) Seller’s personal reasons (attachments, considering the value higher than real, etc.)YOUR OFFER IS REJECTED Home Buying Guide © Carmen Vilar

Once the offer is accepted, You are UNDER CONTRACT Now, it is very important that you and your agent are very careful of the specific time frames for many different part of the contract. You need to be diligent. Send the contract with the earnest money deposit to the title company of your choice. Inform your banker and provide copy of the purchase and sale agreement. Be aware of the time when you need to present the commitment. Do your inspection and due diligence within the stated amount of time.Ask your title company to order the SurveyYOUR OFFER WAS ACCEPTED Home Buying Guide © Carmen Vilar

 If major issues are found, you can cancel the purchase. If the issues are workable, you can either accept them, ask the seller to repair them, or try to get a credit. Other inspections might be recommended, ex: termite, roof, etc.INSPECTION Home Buying Guide © Carmen Vilar

If the property is located in a condominium or acomplex with a homeowners association, the buyermay need to apply to such entity.The condominium or homeowners association willqualify, interview if needed, and determine if theyapprove the buyer to acquire the property in thisneighborhood.If the buyer does not get approved, he/she cancancel the contract.CONDOMINIUM ORHOMEOWNERS ASSOCIATION Home Buying Guide © Carmen Vilar

While you are working on the inspection andwaiting for your banker to process the mortgage,your banker will inform: The Closing Disclosure Cost Appraisal If you mortgage is not accepted, and it was a contingency on the offer, you can request a cancellation of contract.MORTGAGE Home Buying Guide © Carmen Vilar

 It will be ordered by the bank to verify the value of the home. If the appraisal comes lower then the negotiated offer price, then you can try to renegotiate the price with the seller, or you can contribute more to the down payment. This is a moment to consider if it is worth to pay the extra cash for the property or to cancel the contract.APPRAISAL Home Buying Guide © Carmen Vilar

Meanwhile the title co. has been working on allrequired documents, among them: Title Report: makes sure the seller has the legal claim of the property. There are no other liens or claims. The title is clear) Title Insurance: protects against losses in the event that a problem with the title is discovered after the home purchase. Lien Search: This is ordered to avoid future liens Estoppel Letter: reflect the account of the seller with the Homeowners or Condominium AssociationTITLE CO. Home Buying Guide © Carmen Vilar

 Once the title company and the mortgage co confirm the file is ready to close, you will have the Final Walk-Through of the property to make sure everything is in working order or as it was established in the contract. Then, the appointment will be set for you to sign the closing documents. Most of the time, you get the keys at closing or you will be informed when the keys will be provided.READY TO CLOSE Home Buying Guide © Carmen Vilar

Buyer’s • AppraisalClosing Costs • Inspection/s • Survey • Loan Origination Fees +Processing fees + Discount Points • Private Mortgage Insurance • Homeowners association Dues • Homeowner’s Insurance • Title Insurance • Recording Fees • Title Co Fees Home Buying Guide © Carmen Vilar

 Please note, that purchasing a home is probably the largest purchase most people will ever do. As a consequence, it involves a lot of emotions, expectations, fears, and as many feeling for the buyer and the people closest to him/her. This is probably the most important asset and it will continue adding value overtime. Owning a home gives a sense of pride, accomplishment and security.CONGRATULATIONSYOU ARE A HOMEOWNER!!! Home Buying Guide © Carmen Vilar

CARMEN VILARREAL ESTATE AGENT Email 1: [email protected] Email 2: [email protected] Cel: 954-821-5181 Website: www.realestate-in-southflorida.com Facebook: https://www.facebook.com/Real-Estate- In-South-Florida-247936535585248/

Carmen is an experienced real estate agent. She has 10 years ofexperience and has worked extensively with investors in Miami-Dade and Broward Counties. This exposure to the investors markethas given her an edge to find good deals and negotiate them.She has also managed, rented, and sold properties for investors asneeded.Prior to becoming a full time realtor, she was a business owner andBusiness Intermediary. It was for the latest, that she published abook “Selling Your Small Business – A Handbook” (available atAmazon) to assist her clients.Carmen is professional, diligent, dedicated, skilled and willing tohelp her clients:- as a buyer’s agent, she finds the property that best matches their needs and desires, and the best deals.- as a seller’s agent, she finds the right buyers through her marketing campaigns and list of clients.ABOUT ME Home Buying Guide © Carmen Vilar