Chelsea Stevens

In previous posts I've been going over some of the main points concerning home buying. Financing is in place and you've chosen a Realtor to work with, it's time to seriously start looking for a home. The hardest part here will be deciding what is truly important in your dream home. This can be especially difficult if you are purchasing with someone else, such as a significant other or spouse. I recommend that each person makes a wish list, this way you'll see on paper what you agree and disagree on, and you can begin to find a place to comprise as needed. Write your requirements at the top of the list, these are the things that you will have no give on. Next, write down your preferences, these are the things that you would like to have, but are not absolutely required. Once you have some ideas, talk with your Realtor, they'll do an extensive search of the Multiple Listing Service to find all properties currently listed with a Realtor that matches your needs.
Once you have a list, go through many houses. Take notes, be honest with your Realtor on what you like and what you don't like. Even if the first house is perfect, see some more just to make sure. Remember, when looking at houses, try to look past current owners belongings, and the color of paint on the walls, you'll probably repaint anyway! Imagine living in the house day to day, and visualize your belongings in the property. Look past the cosmetics; does the house have a nice flow to it? is this a price range that you would expect newer mechanics? if this is the top of your price, is there work that needs to be done, that you would not be able to do yourself?
If the house has reached all of your criteria, then you've found the perfect home, and it's time to put in an offer!

Alright, I'm getting a little off track here, but this still fits in with my First Time Home Buyer theme I've got going. In case you had not heard, there has been a first time home buyer tax credit available for home purchases by July 1st of 2009, for a credit of up to $7,500(10% of the purchase price) that would be repayed by the borrower for the next 15 years. Basically it was an interest free loan. As of Friday the House and the Senate passed the stimulus package, and I gotta say, I wish I were a first time home buyer now.
Straight from National Association of Realtors here is a graph that illustrates the changes:

FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications Bolded
February 2009

You can download the graph here: Government Affairs Tax Credit Chart

I'm a Realtor, not a tax person, if you have any questions, contact your tax professional.

At this step, the funding is in place and we know how much you can afford. This is a great time to find a Realtor, if you haven't already. It's important to choose a Realtor that you get along with well since you're going to be spending quite a bit of time with them. They also need to be knowledgeable, and be willing to spend the time with you that you deserve.
A great place to start looking for a Realtor is with your own family and friends. They will be able to tell you their first hand experiences with specific Realtors. I'm not saying that just because one person liked a certain Realtor means you will, a lot of that depends on individual personality, but at least it gives you a name in the industry to start with.
If you'd like to meet Realtors in person but don't really want to go through the process of interviewing, you could start going to Open Houses. We're more than happy to talk, and usually have a wealth of information on hand. This way, you can start putting some faces with names, so you can decide from there.
Suppose you just want to go straight out and find a house without any formalities. You really don't care who you work with, so long as they know how to do their job, and chances are if they are licensed they can probably get a deal done. You're best bet here would be just to call into a Real Estate office. There is usually someone there that can help, and if they're anything like me, they're more than happy to leave the desk to go out and immediately show any relevant properties that are available at the time, or schedule a time that works best for you.
And last but not least, quickly becoming a pretty popular source, you can use the Internet. Most Realtors can be found somewhere on the Internet these days, primarily on Realtor.com, but many also have their own websites and blogs with all of their contact information easily displayed. This is a great way to easily learn a bit about the Realtor, you can check out our current listings, or get to know us better by reading our blogs.
With the use of referrals, or your own best judgement, finding the right Realtor will get you on the way to finding the right house.

Alright, you've decided that it's time to buy a home, what is the first thing you should do?
Go find the perfect house?
Start shopping for furniture?
No! You absolutely need to get your funding in order immediately. I'd love to show you homes right away, it's one of my favorite parts of this job. I don't want you to find the perfect house only to discover that you aren't qualified to buy it.
So, first things first, figure out how you're going to afford a house. If you're like a majority of the population, this means you have to go shopping for a lender. Every lender is different, they offer different services, different fees, different interest rates or they may have different qualifications needed for approval. Don't be afraid to shop around, you need to make sure that you're getting the best service out there.
Choose the right bank, the right loan, and discover just how much you able to afford. Then get a prequalification or preapproval letter, this gives the Realtor an idea of what you can afford, and it will make make your offer more solid.
Now, we get to start looking at houses!

For first time home buyers the process of buying a home can be overwhelming...especially if you don't have the right Realtor. When I bought my first house, I had no idea of the process. I did not know what Earnest Money was, or anything that was involved in the month that it took to close on my new property. I do my best to make sure that I put myself in the buyers shoes with every new client, this keeps me grounded and reminds me that the lingo I use daily may be foreign to some people.
So, this week, I thought I'd go over a few things first time home buyers need to know.

Today, I thought I'd start with some basic terms you might hear when discussing the buying process.
Trust Account: An account held by Seller's Broker that is just for holding clients or any other persons funds until a transaction is completed
Earnest Money: This is money that is used as good faith in conjunction with an offer. If the offer is not accepted, then you get your immediately check back. If the offer is accepted, then your earnest money is deposited in a Trust Account. At the completion of the transaction, you either get your money back in the form of a check, or it is credited to your closing costs. If you have an accepted offer and you back out without good reason, the seller has rights to keep the earnest money.
Listing Agent: The agent assisting the seller.
Selling Agent: The agent assisting the buyer.
Dual Agent: If both the buyer and the seller are represented by the same agent, or by two separate agents of the same office.
Multiple Listing Service or MLS: This is the system used by Realtors to pool all listings together. This only includes homes that are listed with Realtors. It gives all Realtors access to the listings of all properties in the area, even those held by other offices.
Abstract: A summary of documents that are compiled into one or more small books that primarily tell a basic history of the property, such as previous owners, and leins held on the property.

Alright, there's a start. Any questions so far? Ask!