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Buying A Home
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| 1. Research
the Inventory |
Check the Home
Search section for the home of
your dreams.
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| 2. Create
the Offer to Purchaser |
Before the offer to purchase is
created, it is very important that you have been at least pre-qualified
or better yet pre-approved by a lender. This is one of the best
negotiating tool a buyer can have. It shows the seller that you
are financially able to purchase the unit. After you have found
the right home, it is time to prepare the offer. In Tennessee,
the offer to purchase covers all facets of the purchase process,
such as:
- Purchase price
- Amount and type of earnest money
- Contingencies (financing, inspection, etc.)
- Personal items you wish the seller to include (washer/dryer,
etc.)
- Closing date
- Time limit after which the offer will expire
- Responsibilities of both buyer and seller
Once you make the offer, we present it to the Seller and their
Agent. The Seller may accept it, prepare a counter offer, or reject
the offer all together. Once the offer is accepted, it is a legally
binding contract.
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| 3. Negotiate
with the Seller |
Negotiation
begins before we get started looking. A strong position is enhanced
by getting pre-qualified for a mortgage. Better yet, making the
effort to become pre-approved will maximize your ability to strike
a deal most favorable to you.
Once we find the right home for you, we will:
Endeavor to discover prices of similar homes sold in the last 6
months help you compare it to any other units you've looked at
evaluate its |
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condition and access the amount
of work it needs determine how long it's been on the market and
attempt to discover why the Seller is selling, and if the price
has been reduced help you affect a strategy using time, price,
and terms to your advantage. David will draw from his numerous years
of experience in negotiating real estate transactions--always with
your best interests in mind.
Whether it's starting with your best offer, saving room to maneuver,
compromising, or making concessions to the seller's counter, David
can present you with the objectivity to help you make a wise decision.
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| 4. Home Inspection |
| We strongly recommend an inspection
for every transaction. The home inspection checks the condition
of the major systems of the home including the structure's exterior,
windows, foundation, roof, garage, electrical, plumbing, heating/air
conditioner, attic and basement or crawl space.
If any major problems with the structure or systems of the
home are uncovered, you will then have the right to void the
sales agreement or to renegotiate the terms of the purchase.
It is recommended that the buyer attend the home inspection.
It usually lasts between 2 and 2 1/2 hours. This will allow you
to ask questions about repairs and maintenance of the unit. Usually
within 48 hours you will receive a written report.
A home inspection usually costs between $200 and $400 and is
the best money you will ever spend.
David has the experience with the inspection community to recommend
a list of accredited inspectors.
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| 5. Appraisal |
| Your lender will order an appraisal
of your home and coordinate with your agent to schedule a time
for the appraiser to see the unit. The appraisal determines the
fair market value of the home and insures the unit is worth the
price you are paying in order to secure the loan. The appraisal
also helps insure the home meets certain standards regarding its
condition. The average costs are $300 for an owner-occupied unit.
If the home does not appraise for the sales price, negotiations
will begin with the Seller to adjust the price. |
| 6. Removing
Contingencies |
| Contingency: The dependence
upon a stated event which must occur before a contract is binding.
David Sullivan uses computerized tracking
systems to accomplish removal of contingencies in a timely manner.
We counsel our clients to carefully consider all aspects of the
situation before the contingency is approved as a part of the
transaction. Communication and understanding is the key. The
following are some common contingencies:
- Buyer obtaining loan approval
- Condominium Inspection
- Sale of Buyer's home
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| 7. Protecting
Your Interests |
Serving
your interests can best be accomplished by working with an agent
with proven integrity and experience. David Sullivan is
recognized in the industry consistently. He has successfully
closed over 1,100 individual transactions for a broad base of
experience in all situations. If situations exceed his experience,
he will be the first to recommend additional counsel - legal
or otherwise.
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| 8. Closing
Process & Final Settlement |
Closing is the deposit of documents
and funds with a neutral third party with specific instructions
as to how they should be disbursed. The Closing Agent acts as the
clearing house for the exchange and distribution of those documents
and funds in connection with transfer or financing of real property.
David Sullivan will attend the closing with you to verify the transaction
closes as agreed. The closing officer, an employee of the title
insurance company will, acting as a neutral 3rd party, explain
the documents and have you sign them. The officer will then assure
completion of transaction by delivering to the lender for verification
and document recheck and deliver to county for recordation of your
deed.
What is an Closing?
Why is closing important to me?
Closing, or the services of a qualified closing agent, assures
all interested parties that the rules and regulations governing
real property transfers will be strictly observed by a neutral
third party with an objective interest in completing the transaction.
A closing agent represents neither the seller nor the buyer.
The closing agent can act only on each party's behalf according
to their written instructions.
What closing services are provided by the Title
Company?
The basic definition of an closing agent's responsibility is
to accept and hold a deed from the seller in exchange for funds
from the buyer. The closing agent will concurrently, when all
mutually agreed terms have been satisfied, release the funds
to the seller and deed to the new buyer. In most sale transactions,
this "simple"
process requires the closing agent to perform the following:
- Order a title report on the subject property
and obtain all the necessary information to clear
all title defects and satisfy existing liens and
encumbrances against the property or the principals
involved in the sale;
- Work with the buyer's lender to insure instructions from
the seller, buyer and lender are coordinated;
- Prepare many of the documents necessary for the transaction
and review all others to make certain they conform to the parties'
demands;
- Figure tax and interest prorates and prepare closing instructions
and statements for both buyer and seller;
- Arrange closing appointments for all parties to sign the
necessary documents;
- After taking final signatures, the closing agent has responsibility
to complete the transaction by checking all documents for completeness,
compliance and accuracy;
- Return copies of all loan documents to the lender for approval
to record;
- Record all necessary documents in the county where the property
is located. This is when the transaction is closed;
- Disburse all funds out of the closing account according
to the signed, written instructions. (These funds could include
the seller's net proceeds, the Broker's real estate commission,
and other payments required for loan approval or to satisfy
other terms of the agreement.)
- Prepare and distribute final closing statements to all interested
parties.
How much does an closing cost and who pays for it?
In a typical sale transaction, the closing fee is based on the
purchase price. Closing fees are a negotiable item subject to agreement
between the parties. If the sale transaction involves a federally
guaranteed FHA or VA loan, the buyer is not allowed to pay some
of the closing fees and these amounts are to be paid by the seller
at the closing.
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