Helping you find and purchase a home is only one facet of my job.

How does my offer get presented to the seller?

In today’s electronic world, offers are sent via email to the seller’s agent. I will call the agent to let them know it’s coming and tell them a little bit about you and the details of your offer. Then I will follow up with the agent again to confirm receipt of your offer.

Does it cost me money to make an offer?

When you write the offer on the home you’ve chosen, you will be expected to include an earnest money deposit. The deposit is a sign of your good faith that you are seriously interested in buying the home.

Where does my earnest money go?

Once the buyer and seller have a mutually accepted offer, the earnest money is deposited into a trust account. That deposit becomes a credit to the buyer and becomes part of the purchase expense.

Is that all the money that’s involved?

Some lenders require the cost of the appraisal and credit report at the time of the loan application.

Can I lose my earnest money?

Real estate contracts are complicated legal transactions. This is another area where having a knowledgeable and professional agent is a necessity. Rarely does the buyer lose the earnest money. Most often, if the transaction falls apart, there are circumstances beyond the buyer’s control that cause it to happen. If the buyer willfully decides, however, that they no longer want to buy the house and has no legal reason for rescinding their offer, then the seller has the right to retain the earnest money.

What happens if I offer less than the asking price?

If you offer less money, the seller has three options. They can accept the lower offer, counter your offer or reject it completely. Remember that there could be another buyer who is also interested in the home you’ve chosen. If they happen to write an offer at the same time you do, the seller will have two offers to compare. There are usually many aspects of each offer to consider, but ultimately the seller will want to accept the best and most complete offer. In active real estate markets, homes often sell for their listed price. In hot markets, there may be many buyers vying for the same house, which sometimes drives the final sale price above the original listing price.

As a real estate professional, I can help you plan your strategy, based on the current real estate market in our area.

What if I need to sell my home before I buy a new one?

To put yourself in the best negotiating position before you find the new home you want, hire a qualified real estate agent to help you put your home on the market. Once you write an offer on a new home, your offer will be “contingent” upon the sale of your home. A buyer in this position may not have the same negotiating power as one whose home has already sold (or at least has an accepted offer). The seller may be hesitant to accept your offer because there are too many things that must happen before the sale can close

Loan Amount

The amount of the mortgage based on the purchase price, minus the down payment.

Down Payment

Cash that the buyer provides the lender as their portion of the purchase price. The down payment is considered the buyer’s equity (or cash investment) in their home.

Points

Fees charged by the lender to offset their interest rate, if it’s below the prevailing market rate. One point equals one percentage point—so one point on a $100,000 loan would be $1,000.

Appraisal fee

The amount paid for the lender’s appraisal of the property.

Credit Report Fee

The fee charged by the lender to obtain a credit report on the buyer.

Title Insurance Fee

A one-time premium that a buyer pays for protection against loss or damage in the event of an incorrect search of public records or misinterpretation of title. The title insurance policy also shows what the property is subject to in terms of liens, taxes, encumbrances, deed restrictions and easements.

Escrow Fee

The amount a buyer pays the escrow company or closing agent for preparing papers, accounting for all funds and coordinating the information between all parties involved in the transaction.

Closing Costs

A general term for all the estimated charges associated with the transfer of ownership of the property

Prepaid Interest

The amount of interest due on the loan during the time period between closing of escrow and the first mortgage payment, due at the time of closing.

PITI

The estimated house payment, including principal, interest, taxes and insurance

Principal and Interest

The loan payment, consisting of the amount to be applied against the balance of the loan, and the interest payment, which is charged for interest on the loan.

Total Cash Required

The total amount of cash the buyer will need, including down payment and closing costs

Premium Mortgage Insurance (PMI)

Insurance for the lender, to cover potential losses if the borrower defaults on the loan.

All of us at Windermere Real Estate are committed to the principles of Fair Housing practices for all. Fair Housing is a matter of treating all people equally while adhering to federal, state, and local laws.

FAIR HOUSING ISSUES

Many buyers and sellers ask questions about the people who live in a neighborhood. Such questions are outside the scope of our professional practice. Some of them raise Fair Housing issues, and all of them seek subjective judgments rather than objective information.

THE LAW

Federal law prohibits discrimination in a real estate transaction based on race, color, religion, familial status, sex, handicap, and/or national origin, and state laws may prohibit discrimination on other bases, such as sexual orientation, veteran/military status, ancestry, and others.

Buyers: Once the buyer and seller have a mutually accepted offer, the earnest money is deposited into a trust account. That deposit becomes a credit to the buyer and becomes part of the purchase expense.

Sellers: If you receive a bona fide offer on a property, you cannot refuse to sell to or negotiate with the prospective buyer based on the aforementioned prohibited criteria. You may not falsely represent that the home is no longer for sale, nor can you advertise the home with an indication of preference or limitation on what type of people may purchase it.

Agents are prohibited from “steering” prospective buyers to specific neighborhoods based on the aforementioned criteria. A victim of discrimination may pursue a civil lawsuit or an administrative claim and seek a temporary restraining order, permanent injunction, actual damages, punitive damages, and attorney’s fees.

FURTHER RESOURCES

For more information, explore your local librariesʼ resources on census figures in your neighborhood(s) of interest. Local police precinct stations and school districts can also provide statistical information to aid your research. Otherwise, much information is available on the Internet to help you determine which neighborhood best suits your needs.