Home BUYER'S GUIDE
Buying Your New
Founder & Designated Broker
Before we get ahead of ourselves. *THIS IS ABSOLUTELY CRUCIAL* IF YOU WANT TO HAVE LEVERAGE ON A NEW HOME PURCHASE DO NOT GO TO A MODEL HOME & SIGN IN, WITHOUT YOUR OWN REAL ESTATE AGENT PRESENT- EVER.
This is by far the #1 mistake buyers make today when considering a new home purchase.
"Why is going in without my own Agent a mistake?"
"We're just having fun"
"We're not serious, just browsing..."
Though your intentions may be innocent enough we've recently heard some saddening stories from Agents and Buyer's alike who signed in YEARS Ago, only to find out years later, when they have suddenly become serious potential new home buyers that they inadvertently "waived their right" to their own Agent Representation.
"Why might I want my own representation when buying a new home?"
Through our Brokerage we provide 4 Great Reasons!
#1 - We understand the in & outs of the new home buying process and can help guide you on reasonable upgrades since we are not compensated by selling you upgrades.
#2 - We provide you a complimentary 3rd party 2 stage inspection that looks out for your interest during construction & ensures further defects are caught before drywall & paint.
#3 - We pay for your local moving services
#4 - We help make sure you're getting the best interest rate
With that said Please let us know or your preferred Agent know before your 1st visit that you are interested in New Homes - even if you're just a curious dreamer, window shopping for now, your future self will thank you!
Now a little about us...
Tired of Traditional Brokerage Models & "Cash Buyers"? We were too! So, we decided to do something about it and create a new Brokerage Model, we call it - PLAYYCE® (Place).
We integrated the word "Play" in the name because life is about how we play! Life should not be all about work & neither should your home! Where you call home determines how you play - What do your nights look like? Are you near your favorite gym or running trails? Love to eat? Love to cook? How does your Family & Friend time all tie in? Does your home match your ideal lifestyle?
We believe home selling and buying should be FUN - It should also be made as simple as possible with caring people by your side, to help you understand the process and look out for your best interest.
Your privacy, cutting edge technology and Human touch customer service are keystones to our Brokerage Model. All in order to deliver a higher level of service, consistency and outstanding value to our clients.
With trust in many institutions, businesses and government at all time lows we look to provide you with Honesty, Knowledge & Peace of Mind so that, You feel empowered enough to make decisions that make best sense for You(not anyone else). We hope in return we'll earn your business, trust and hopefully friendship too!
As PLAYYCE® Professional Real Estate Consultants we have surrounded ourselves with the resources and vast network to deliver on the questions that we are presented with on a daily basis. We look forward to helping you find answers and solutions for your real estate needs.
PLAYYCE® Not only the "The Smartest Way to Sell & Buy Real Estate®" also the Funnest(IOHO)!
Housing expectations for 2020
The NAR publishes some great data every year in regards to housing expectations.
Existing Home Sales:
Median Home Prices:
Potential speed bumps
Tight inventory conditions
Increasing home prices
Rising mortgage rates
Waning consumer confidence
*The Case for Optimism
New housing starts are only now returning to levels seen previous to the last major housing downturn, resulting in low inventory conditions that persist in single family home resales. Expect home prices to continue to climb throughout 2020.
7 Things to consider before buying a new home
Buying a home is a big decision to make, and can have an impact on a variety of areas of your life. Here's our top 7 of our best suggestions to consider before committing to a purchase.
Before you buy, strengthen your credits score
Remember, higher credit scores will have lower down and monthly payments. This can represent tens of thousands of dollars in savings over the course of a mortgage.
Determine how much home you can afford, first
Buy housing that runs about two-and-one-half times your annual salary. Prior to looking at homes, speak with a reputable loan originator who can pre-qualify you.
Know where you want to be
Think about your lifestyle, and how it is now. How it might be in 5-10 years? Will the location or property you are interested in still be adequate in that timeframe?
Don't buy if you can't stay put
If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet.
Carefully review your offers and counter offers
Make sure you understand all facets of the offer to purchase, and any counter offers you may receive from a seller. Speak with your buyers agent about any questions you have.
Get a home inspection
A home inspector will provide you a detailed report of the property condition and outline repair recommendations. Get this ordered early so you have time to carefully review the condition of the home prior to removing contingencies.
Make sure you love your buyers agent
A great buyers agent can take the stress out of a home purchase. Our goal is to ensure you find the perfect property, get the best possible deal, and enjoy a worry free experience for the entirety of your purchase transaction.
Rent VS Buy
Which fits your style? Here's a breakdown of some of the differences that effect whether it's the right time for you to buy a home. Take a look at some of the categories, and ask yourself which side you fall under.
I will be in my home for less than 3-5 years.
I will be in my home for more than 3-5 years.
I want to stay mobile or flexible.
I want to start building home equity.
I don’t have time for home maintenance.
I have time for home maintenance.
have debt and/or am repairing my credit situation.
I have little/no debt, and good credit.
I don’t have enough money for a downpayment and closing fees.
I do have enough money for a downpayment* and closing fees. * Down payments currently range from 3-20%+ in some cases buyers are still able to get down payment assistance.
8 Steps to buying a home
Purchasing a home can be quite easy. If this is your first time you will find that there are only a handful of key decisions to make in order to hold the keys to your own home.
Select an Experienced Real Estate Agent, Real Estate Broker or Realtor®. Experience can mean an agent that has years of experience, high transaction volume or transacts real estate Full time (Better yet why not all 3).
Get pre-approved by a mortgage lender. Equally crucial, an Experienced lender can help overcome obstacles that may arise.
Strategize with your Agent on areas/ upgrades and your lender to decide the right loan program.
The FUN Part - Shop for the perfect Home!
Get your New Home under Contract
Open escrow, decide on upgrades/finishes, inspect at various build stages.
Work with your lender to complete the loan funding process.
Close escrow and ENJOY your New Home!
What you don't know about credit
You‘ll need a credit report to make sure your score and reporting are accurate. Work directly with a lender on your credit score. They can help provide recommendations, work with scoring agencies, and improve your score when you obtain your loan.
General Guidelines when it comes to a loan
Higher credit scores have lower borrowing costs.
Focus on your credit score long before your loan.
Credit score differences add up to thousands of dollars.
Pay close attention to your debt to income ratio.
How your credit score effects you
BUYER BEWARE Subprime Mortgages are available, but carry high fees.
TIME COST BENEFIT Few quality loan programs exist. Improve your score.
RECOMMENDED Mimium score for a loan with minimal charges. Get good terms with low fees.
GO SHOPPING! Best loan programs and lowest borrowing costs on the market.
Other useful information
Points and Rate on a mortgage Borrowing money costs money. Loans require interest, which can be paid over time, or up front as additional points. Paying the interest ahead of time results in a lower overall monthly payment. This requires up front cash and is not a payment towards principal. Paying additional points is only recommended for purchases where ownership is long term.
You don’t need a 20% down payment Traditional loans requiring 20% down are no longer your only options. Plenty of public and private lenders off er a variety of loan programs that can provide you a great loan with as little as 3% down. First-time homebuyers have additional state and federal programs available.
Why you need a buyers agent
Purchasing a home actually involves a lot of legal contractual knowledge, organization and negotiating skill. Don't jump into any deal without consulting an expert buyers agent who can get you the best possible results.
An experienced advocate
A right agent can help with your purchase as well as recommend other trusted professionals.
A local Realtor® will help you navigate the requirements of a written offer, as well as the complexities of closing of escrow.
Maximize your investment
Home upgrades, repairs, and resale questions can be investigated anytime.
Your agent understands factors that impact you, and can provide advice on when, and how to purchase.
Answer questions after closing
You can still continue to communicate with your agent long after the close of escrow.
An expert in your desired neighborhoods will provide important details you may not know.
What not to do when buying a home
It is incredibly easy to mismanage funds or your alter credit and doing so during the loan and escrow period can greatly impact your both your borrowing costs and can even keep you from funding the loan in some cases.
Don’t apply for a new Credit Card!
Don‘t apply for any unsecured debt if possible during the loan and escrow period.
Don’t go furnish the home before you own it!
Nothing is set in stone until close of escrow. Do not make plans that cannot be cancelled if the deal fails to close.
Don’t buy a new Car!
Changes to your credit score of even a few points can mean thousands in fees.
Avoid Changing jobs!
Lenders are looking for job security. That new opportunity may need to wait.
Don’t close any Credit Accounts!
Always leave open credit available to you. this is part of your overall score.
Don’t get behind on Payments!
Make sure you stay on top of your credit card and rent payments.
Don’t Move Money Without A Paper Trail!
You will need to provide your lender documentation of your finances.
Don’t Spend Your Savings!
Your lender will want to see that you have something set aside for arainy day.
The home inspection
For a new resale home purchases, aprofessional home inspection is recommended. The inspection will include but ay not be limited to the following:
Roof and Attic
Don‘t expect the report to catch every minor defect. The inspector is looking for serious problems that require repair, or will lead to serious problems if a repair is not completed in a reasonable time-frame.
1. Pass or fail?
A home inspection is just a report of the repairs recommended for the property. It is not a pass or fail test. However, some lenders do require certain repairs be completed in order to fund the loan.
2. Handling the repairs found in a home inspection
A completed report can have an effect on the purchase price, your interest in the property, and which repairs need to be addressed prior to close of escrow. The seller may be willing to negotiate terms, and your lender may or may not require some repairs be completed in order to fund your loan.
3. Choosing the right inspector
Home inspections can vary by company, as well as by inspectors individually. Always use a trusted recommendation for a professional that will give you the information you need.
4. Be there!
The day of the inspection, be present with your buyers agent and the inspector. This will help you understand the items that appear on the report, and will give you an opportunity to see the home through the eyes of an objective third party expert.
Contract to close
Once your offer is accepted, the buyers agent will help coordinate with everyone needed to make sure purchase requirements and all quoted time frames are met.
This is a deposit that shows you are serious about the purchase. It is heldin the escrow account, and is non-refundable after contingencies are waived.
The inspection period will be specified in your accepted offer. During this time all property inspections, disclosures from the seller, and repair negotiations must take place.
Approval for your loan will require an appraisal. Your lender will send a neutral third party to prepare a determination of it’s current market value.
Obtain homeowner's insurance
Homeowners insurance is often required to obtain your loan. you may already do business with an insurance broker, or you may elect to use one recommended to you.
A home warranty id recommended for all at least the first 2 years of home ownership. The first year can often be negotiated to be paid by the seller during the escrow period.
Title Insurance protects you the lender from the possibility that the title is not free and clear. It is typically a requirement for the loan.
Just before close of escrow, a final walk-through of the home will be conducted by you and the agent. This is a check to ensure the condition has not changed.
The settlement statement
You will want to double check the settlement statement carefully for the various items you’ll need to pay for at closing. Have a check ready for the amount required.
Closing day is usually straightforward. You will typically need to bring blank checks, your drivers license, and meet at the title company. Your homeownership awaits!
After the closing
An ongoing relationship with our clients
Despite closing escrow marking the end of the purchase process, it also marks the beginning of an ongoing relationship. Keeping in touch with the agent allows you to continue to use this valueable resource of information whenever you need, like referrals for plumbers, electricians, and several other service professionals.
Your referrals are key!
Maintaining an ongoing client relationship is just part of an overall commitment toprovide a level of service well above and beyond expectations. Your agent relies on word of mouth referrals for additional business, and good referrals allow the agent to devote more time to helping clients andd less time to finding them. If your experience is amazing, be sure to tell your friends!
Drop us a note
I greatly enjoy working with buyers and helping them purchase their dream homes. If you’re looking to conduct your home search soon and find a new residence, please get in touch with me via email or phone today.