10 Things Every Home Buyer Must Know
1). Most real estate agents don’t represent you, they represent the Seller.
The typical real estate agent represents Sellers. What this means is that when a Buyer goes to their office seeking representation, he or she is meeting with a biased party. The real estate agent is biased because of the profit motive that results from you buying one of the properties that he/she has listed. If the real estate agent gets you to buy one of their listings, then they get to keep 100% of the commission. On the other hand, if you buy a property that they do not have listed, they will only get a portion of the overall commission which will be shared with the listing agent.
Kane is different. We exclusively represent Massachusetts buyers. Therefore, we are unbiased as to which property you buy. We want what is best for you.
2). You need a home inspection
Never judge a book by its cover! The most beautiful home in the world may have serious and costly structural problems. You may be unable to tell from walking through a home if it is infested with rodents, has termites eating away at the wood, or has unsafe wiring that could cause an electrical fire. For this reason, one of the safest and inexpensive ways to protect your family is through having a licensed home inspector inspect the property prior to buying it.
3). Title Insurance is a Must
Title insurance is a one time inexpensive investment that you must make to protect your home. Lets say that the Seller has two mortgages on his property. One for $100,000 and the other for $50,000. Do you know what would happen if the closing attorney forgot to pay the $50,000 mortgage at closing?
The answer may surprise you. That $50,000 mortgage stays on the property. Ultimately if it is not repaid your house may be foreclosed on.
Title insurance protects against such happenings. In the event that a mortgage is missed by the closing attorney, the title insurance company will ensure that your property is not foreclosed on.
4). What is your credit score?
Unless you are independently wealthy, you will be taking out a mortgage. Your credit score will be critical because it will determine how large of a mortgage a bank will give you and at what terms. The higher your credit score the more likely you are to get a lower interest rate on your mortgage.
Also, your credit score may reveal errors such as accounts that do not belong to you. For this reason it is important that you know your credit score and have reviewed a copy of your credit report prior to searching for a home.
5). How are you going to finance the purchase?
The number one reason why most purchases fall through is because the buyer is unable to obtain a mortgage. For this reason you should start searching for a mortgage prior to looking for a home. You should determine if you qualify for a mortgage and how large of a loan you can get approved for.
There are numerous financing options, such as : adjustable rate mortgages, interest only mortgages, and traditional fixed rate. Today, many home buyers can purchase with as little as a 3-5% down payment.
Educating yourself on all of the options early on in the home buying process will save you time, money, and anxiety.
6). What type of property do I want?
There are numerous property types to choose from. All have their advantages and disadvantages. For example, a multifamily may reduce your monthly housing payments. However, you will have to deal with tenants. Condominiums may have less maintenance, but you may be restricted in terms of the type and quantity of pets you can have and other restrictions. Single family homes allow you great personal freedom, but also high maintenance costs and property taxes.
Determining what housing type is suitable for you is a key first step in the home search process.
7). When is the best time to buy?
Generally speaking the best time to buy is during the winter. This is because there are less competitors shopping for homes. Buyers usually wait to the spring and summer months to buy. This is because the weather in Massachusetts is usually bad during the winter months and parents don’t want to move because they may have to change their children’s schools.
8). Is the property worth the asking price?
Determining a property’s value is difficult and often subjective. There are some tools that you can use to help you. For example, you can check the assessor’s office in the Massachusetts City/Town where the property is located. They will have an assessed value for the property. This value was given to the City be a licensed appraisal company, so that the municipality may determine how much the property taxes should be.
There are also free sites such as: www.zillow.com that may help you determine the home’s value.
When you apply for a mortgage the bank will have an appraisal done on the property. However, it is always advisable that you have an independent appraisal done.
9). What is the role of the buyers real estate agent?
- Protect your interests
- Educate you on the home buying process from the initial offer through closing
- Help you secure financing
- Negotiate the best terms possible with the Seller or his agent on your behalf.
- Show you all available properties that meet your needs
10). You pay nothing for our services
That is correct! Our commission is paid 100% by the Seller.