Realtors® are More Than Agents. Get to Know the Realtor® Difference.

This might seem like a simple question, but there is a lot to owning a home. From the actual process of buying the home to the demands of being a home owner, the journey to homeownership is a long road. If you are prepared and owning a home is right for you, then follow these next steps.

The vast majority of home buyers need a mortgage loan to buy a home and securing financing can be difficult.  Lenders make their decision on whether to issue a loan based on the likelihood they will be paid back. To do this, they look at your credit score.  The higher your credit score, the better chance you have for obtaining financing. Unfortunately, there can be errors on your credit reports that can impact your credit score. To prevent this, make sure to obtain your credit report and correct any errors prior to applying for a mortgage. 

"Pre-approval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre-approval letter, which shows your borrowing power and that you have the ability to go through with a purchase. 

While getting a pre-approval letter is an important step, determining what you can afford is a personal decision. Only you know what feels comfortable. Remember, in addition to your loan payment (that includes principal, interest, taxes and insurance) there are also heating and cooling costs, water and sewer bills and potentially maintenance and association fees.

Make a list of the features and benefits you want in a home. Consider such things as pricing, location, size, schools, amenities and design. Consider your priorities. If you can't get a home at your price with all the features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen or a longer commute for a bigger lot and lower cost? Finally, consider your needs in several years.

A local Realtor® truly knows the local market. They have been in many of the houses that are for sale in the market that you have seen online. They understand why certain homes in certain neighborhoods are priced the way they are.  They are also in the best position to help you find the house that most closely matches what you want in a home. Most importantly, a Realtor® will be looking out for your interests.

Once you have found a house that you would like to buy, you need to make an offer to the owner. In a typical situation, you will complete an offer along with a $1,000 deposit that your Realtor® will present to the owner and the owner's representative. The owner, in turn may accept the offer, reject it or make a counter-offer. The owner’s response will determine your next step. (Please note: In some markets, it is not unusual to go directly to signing a purchase & sale agreement. Working with a local Realtor® will be able to easily guide you through the process

After your offer is accepted, it is routine to have a home inspection. During these examinations, a licensed inspector determines if there are any physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and you should attend. This is an opportunity to examine the property's mechanics and structure, ask questions and learn more about the property than is possible with an informal walk-through.

Provided you are satisfied with the home inspection, the next step is to sign a purchase & sale agreement. This document details the specifics of the transaction, such as: repairs to be completed; fixtures to remain with the property the property’s status regarding lead paint; and, if a septic system exists, the confirmation of a Title 5 certificate (in Massachusetts).  The closing date is then finalized and a five percent deposit is made (which is held in escrow until the closing). If you have any questions about your legal rights or responsibilities, you should consider consulting an attorney.

This is the day you become a home owner, but there are several final steps. Prior to closing you will have a walk-through of the home you are buying. This is to make sure repairs (if any) were made and that the house is in the same or better condition than when you made the offer. Most lenders will require that you have a home owner’s insurance binder (proof of insurance) before they will close the loan. Many buyers also purchase title insurance with a one-time fee at closing. Title insurance protects owners in the event that title to the property is found to be invalid. After signing the loan documents, the sellers receive the remainder of the payment from the closing attorney and you’ll be handed the keys. 

This might seem like a simple question, but there is a lot to selling a home. From the actual transactional process of selling, to physically cleaning and packing all your stuff up—selling a home is a serious undertaking. If you are prepared and selling your home is right for you, then follow these next steps.

A house that “sparkles” is likely to sell faster and at a higher price than its shabby neighbor, even if they’re both structurally well-maintained.  Getting your home to its highest aesthetic potential before a showing doesn’t have break the bank, however. Before putting your house on the market, take as much time as necessary (and as little money as possible) to maximize its exterior appeal. For example, you might trim hedges, cut the lawn, keep your garage door closed and apply a fresh coat of paint to the front door.

There is a big difference between making minor and inexpensive “polishes” and “touch-ups” to your house, such as putting new knobs on cabinets and a fresh coat of neutral paint in the living room, and doing extensive and costly renovations, like installing a new kitchen. In readying your house for sale, consider how much should you spend and put your money where it matters most. Enhance your home’s interior by removing all clutter, repainting dingy walls and repairing cracks, leaks holes and other damage to walls, plaster and tiles. 

Realtors® are professional real estate experts that subscribe to a strict Code of Ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. A professional with this high caliber industry knowledge is essential in a time when home selling has become more complex than it used to be. Your REALTOR® should be able to give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

Several factors, including market conditions and interest rates, will determine how much you can get for your home. In other words, home selling is part art, part science, part marketing, and part negotiation. Your REALTOR® will be able to help you determine the selling price for your home.  Additionally, as a seller you can consider hiring an appraiser to give you a full appraisal of your property before to list your home for sale. Otherwise, an appraiser is usually paid for by the buyer later in the transaction after an offer is accepted. 

An appraiser will tell you what your home is worth. Some of the things an appraiser use to determine your home’s worth are the location of the home, the proximity to desirable schools and other public facilities, the size of the lot, the size and condition and recent sales prices of comparable properties, among other factors.

Perhaps the most complex moment in the sales process comes when you get an offer for your home, but sellers who have chosen the right REALTOR®, prepared their home for sale and priced it right are strongly positioned for a smooth real estate transaction. It’s important to note that the highest offer is not always the best offer. If you prefer a lower-priced offer, perhaps with a better qualified buyer or more attractive terms, you can accept that offer instead. Or you can give counteroffers to one or more of the buyers. Your REALTOR® should be your partner and educate you on the terms of the offer and help you understand the offer in the context of the housing market in your area. Additionally, always consult your attorney before signing an offer.

It is routine for the buyer to hold a home inspection after you have accepted an offer. During these examinations, a licensed inspector determines if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours. Try to leave the premises, be courteous and make agreed-upon repairs promptly.