Dustin Nulf - Real Estate Sale Professional

Yet another hand-out I've created for buyers. Let me know if I've missed anything or you have any suggestions. Feel free to use this or repost it, please include my email and website address though.

Buyer Checklist

•1. Read and sign the Consumer Notice. (The Consumer Notice is a summary of an agent's duty to you the consumer and required to be delivered to the client before any substantive discussion regarding real estate occurs. If this is not done before a substantive discussion occurs, the agent is breaking Pennsylvania law.)

•2. Get Pre-approved for a mortgage. (Getting pre-approved is the first main step in buying a home. When buying a home it is important to take into consideration the value of a timely offer and negotiation... the faster your offer is placed, the less likely a better offer will come in while negotiating a deal. When you are pre-approved you can make an offer on a house immediately and begin negotiations quickly.)

•3. Sign a Buyer's Agreement. (A buyer's agreement is the agreement between a sales agent and the homebuyer. Signing a buyer's agreement ensures that the agent will be working for you and you only, and negotiating the best possible deal for you as well as advising in your best interest. If you make an offer on a house through an agent that you have not signed on with, that agent then becomes a sub-agent for the seller, meaning their fiduciary duty is now to the seller and not to you, the buyer, anymore.)

•4. Look at some properties. (How will you find a house without looking at candidates? Let your agent know what you're looking for and be specific. [ex. if you absolutely don't want to live in a certain area, tell your agent that] A good agent will be sending you weekly or even daily listing updates. Sometimes it's best just to get a stack of listings and go for a drive with your agent.)

•5. When you walk into a home and feel that "certain feeling", don't delay, make an offer! (Buyers may lose the chance to purchase their dream home by "sleeping on it". Remember time is of the essence if you fall in love with a home, go with your gut instinct and let your agent know you want to place an offer. [The first house I was interested in was sold under my nose as I waited one day to think about making an offer])

•6. Fill out and sign an Agreement of Sale with your agent. (When you decide to make an offer your agent should right up a sales contract and deliver it to the seller's agent immediately to begin negotiations as well as give you a Good Faith Estimate of costs to the buyer up to and during the settlement process.)

•7. Negotiate with the seller via your agent. (Remember that your agent's duty is to get you the best price and to advise in your best interest.)

•8. Once the sales price is determined, have the home inspection done if it is deemed necessary and listed on the Sales Agreement. (A home inspection will let the buyer know the extent of what they are getting into as far as maintenance and any necessary, immediate repairs. Some sellers will already have had a home inspection report prepared, make sure you get a copy of it.)

•9. Have any Radon, termite, asbestos or lead based paint inspections done. (These inspections will usually be decided on by the buyer and the buyer will have to pay for them [like the home inspection] at the time they are completed. Remember that the Sales Agreement can be cancelled by the buyer if an unwanted issue is found during any inspection as long as it is marked correctly on the Sales Agreement the buyer and seller may also agree to continue with the transaction if the seller agrees to repair the problem.)

•10. Once the terms of the contract are met, the buyer will be responsible for:

-having utilities put into his/her name (on closing date)

-having the home insured

-a walk-through to make sure the house is in the same shape as it was during the negotiations

-being at the closing to seal the deal and get the keys

For more information feel free to email me at dustinnulf@prudentialpreferred.com or visit my website at www.dustinnulf.com

Another hand-out I created for buyers. Let me know of any suggestions or needed fixes. Feel free to use this or repost it, just be sure to include my email and website with it please.

First-time Homebuyer Credit FAQ

•1. Is this an actual payment or just a tax write-off?

This credit is an actual payment that you can receive with your next tax return. It is not a tax write-off or deduction.

•2. Do I have to repay this home credit?

No. Unlike the previous year's $7500 credit, a pay back is not required unless the buyer moves from the home before occupying it for 3 years.

•3. Do I have to wait until next year to receive this money on my tax return?

No. You could receive this credit this year. To do this you will have to amend your current tax claim. Theoretically, you could receive this money to help you with the purchase or with any updates.

•4. Is this only available to buyers who have never purchased a home?

No. Any buyer who has not owned a home in the last year is qualified to receive this credit.

•5. Will I get the $8000 credit on any home I purchase?

No. The maximum credit is $8000 and you can receive this on any home over the purchase price of $80,000. Any home purchased for less than $80k qualifies for a credit of 10% of the purchase price.

Have any more questions about the $8000 Homebuyer Credit or about the purchase of your next home? Drop me a line at: dustinnulf@prudentialpreferred.com or visit www.dustinnulf.com

This is something I created as a hand-out for buyers I work with. Let me know if I'm missing anything or if something could use a fixin. Please feel free to use this as well, but I ask that my email and website be attached if you are going to use or repost this.

Thanks,

Dustin Nulf

www.dustinnulf.com

Buyer FAQ

This page is an attempt to answer some popular questions that buyers tend to have when thinking about purchasing a new home. Please feel free to contact me with any other questions or comments via the "contact me" link on the top right-hand side of this page.

•1. Where do I start? What is the first step in the home-buying process?

I would say that a good first step would be to talk to some lenders to see "how much house you can afford". It's a good idea to talk to the bank or credit union that you utilize on a daily basis first. Find out what rates they can offer you on conventional mortgages and see if you can get prequalified right there. Don't be afraid to shop around too. Some banks will offer better rates than others on the same type of loan.

It is also good to know what monthly payment you'll be able to handle and whether you will want to look for a 15 year or a 30 year mortgage.

•2. What does it mean to be prequalified? Why should I be prequalified?

Being prequalified is having a lender take a look at your credit history, your income, and your debt ratios to determine the maximum amount that they would be willing to lend you (if at all). The lender will then supply you with a written notification stating that you're a prequalified for up to $xxx. Having this letter allows you to place an offer on a property and supply proof that you are "good for it". Many sellers will not even consider an offer unless there is some sort of proof-of-funds or preapproval letter.

•3. What is an FHA loan?

FHA loans are very popular nowadays. An FHA loan is a federally-backed mortgage. The standards for receiving an FHA loan are usually a bit more lax than other types of mortgages. FHA loans allow barrowers to accept a certain amount of money as a "gift" from family and also usually require less money down. FHA loans usually require the property to be in better shape than a conventional loan. (There can be no peeling paint or old electrical boxes and things of this nature).

•4. What is a VA loan?

A VA loan is a loan that is also backed by the government and is available to those who have served in the Armed Forces at one time. VA loans are also a bit more relaxed when it comes to barrower requirements. Ask your loan officer for more information on VA loans if you think you may qualify.

•5. What are the benefits of using a Real Estate Agent over searching on my own?

The benefits of using a Real Estate Sales Professional are many:

Experience: A Real Estate Agent is a trained professional in the field of Real Estate Sales. Agents view, show, and complete real estate transactions on a regular basis, whereas an average buyer may only buy or sell a property 1 to 3 times in their entire life.

Negotiations: Having an Agent is also having a negotiator mediating between you and the seller. Emotions tend to become involved when individuals are selling the home they have lived in for a while and unfortunately this can lead to heated arguments which sometimes result in a failed transaction. To have someone on your side, working as a mediator to quell any such issues and avoid disputes is a major advantage.

Bargains!: A good Buyer's Agent will be able to do a Comparative Market Analysis for you to ensure that you are not paying too much for a home in any given area. He or she should also be able to walk through a property with you and let you know where certain issues may arise affecting your ability to get financing as well as things that may drain your pocket book in the future. (Leaky plumbing, older appliances, older roofs, etc.). Your agent should then be able to advise you in your best interest during offer time.

No Fee!: Buyer's Agents do not get compensated until the sale closes... and the commission comes from the seller not the buyer. If you are not satisfied with the efforts of your Buyer's Agent, you should be given the option of writing a termination letter and finding a new agent (this is an option that all buyers should demand).

•6. Won't I save money by avoiding the services of a Sales Agent then?

A large number of homes are sold by Real Estate Agents. Just drive down any road near you and see for yourself... compare the number of homes with a broker's sign to the number with "For Sale by Owner" signs. Who has the most homes for sale? If you are buying your home from an agent, you will be paying a commission (period). The same commission will be collected no matter how many agents are involved (it's in the contract that the seller(s) signed to list their home). So if the same commission is being collected either way, would you prefer to be represented or not? The seller is being represented in this scenario.

Now let's say the home you want is 10% overpriced, but you don't know this. Wouldn't you want to have someone who is able to warn you before you pay too much for this home? This is how a Buyer's Agent can save you money.

(I was being nosey one day and looked up the price of two homes that some friends of mine had purchased strait from an agent without having an agent working for them. I was sad to see that they had both overpaid by 10k or more.)

•7. Are all Real Estate Agents also Realtors®? What's the difference?

Real Estate Agents are not all members of a Realtor's® Association. Realtors® are members of local and national Realtor® Associations. To be a Realtor® means that you have been sworn to uphold a higher level of ethical business practice. A Realtor® is held accountable to this oath by his colleagues within the association and by the clients he works with every day.

Did I miss anything? For more information about purchasing a home, drop me a line at: dustinnulf@prudentialpreferred.com

I just finished purchasing some domain names and got a website up and running... check it out and let me know what you think!

www.dustinnulf.com

I'm about to watch the Steeler game... the Cardinals just beat Philly. What do you all think about the Steelers vs. the Cardinals? Sounds good to me!