David Width Jr.

One of my listings got showed twice this past Saturday, I showed it myself & another Coldwell Banker agent showed it as well. So, as always, I called the agent for feedback later on that day after she showed the property. She had informed me that her buyer like the house a lot, and that it was in the buyer's top 4 homes of which he would choose one to pursue. As if getting 2 showings on one property on the same day wasn't enough, my seller's property had made the top 4. Not bad. I immediately called my seller to give him the good news.

We hadn't heard anything more after that showing on Saturday. So this morning my seller called me. His exact quote to me was " I would appreciate if you would call the other agent and ask her WHAT WOULD MAKE OUR PROPERTY HIS #1 CHOICE."

It just shocked me, why haven't I been asking this question when I get an answer from another agent saying " the property was in the top (x) ." This is such an important negotiating strategy that I will be adding to my " my little black book for negotiating."

So I have done just that and we will see where it goes from here. I just wanted to share this with other agents and sellers because this is such a great question to ask. If you are already among the top choices of a qualified, motivated, and active buyer, find out exactly what you could do to your property that would make your property their#1.

Better yet, why not ask the seller to make the buyer an offer. I know it sounds abnormal, but we are in abnormal times.

Here is part 3 of this 4 part series.

Mortgage Commitment:

If the buyer needs a mortgage to purchase the property, then it is his or her responsibility to meet with the lender/ bank and begin the application process if they haven't already done so. Some lenders may try to convince you not to shop around explaining that it will hurt your credit rating. This is NOT true. Shopping around for a mortgage rate does NOT hurt your credit so long as your credit is NOT run more than six times for that purpose (i.e. six lenders pulling your credit for mortgage purposes). If your credit is run for different reasons (i.e. credit card app, car loan, and mortgage app) then it WILL affect your credit rating.

You must instruct your mortgage representative WHO your attorney is and that your written mortgage commitment needs to be faxed to them in order to proceed with ordering title insurance. You must be sure that all conditions of the loan are met. If the lender asks for W-2's, tax returns, pay stubs, etc. it is your responsibility to get it to them quickly so as not to delay this process. The contract will specify a date by which the mortgage commitment MUST be received, so getting them everything they need when they ask for it is very important and helps things run smoothly. Title Insurance is NOT ordered unless the mortgage commitment is received, unless otherwise authorized by the buyer.

Title Insurance:

Title insurance is a one time paid premium securing your property against any liens and/or judgments, which may be secured by the home. By way of example, a mortgage is a lien against the property. If you did not purchase title insurance, closed on the property, and the prior owner had a mortgage which was never paid off, the lien becomes your problem. Your attorney will order title insurance for you once the mortgage commitment is received from the lender OR unless authorized to do so earlier by the buyer. ALL lenders require title insurance.

Survey:

Some mortgage companies require that a new survey be performed on the property. A survey is a drawn picture of your property (almost as if it were the view from an airplane) and placing the house, garage, shed, pools, etc. on the property in proportion. It tells you where your property line and corners are and exactly what is contained within the perimeter. The surveyor would also provide a flood elevation certificate, if requested, which may help reduce flood insurance rates. Your attorney will order the survey for you if it is required.

Hazard Insurance:

Also known as homeowners insurance, the buyer is responsible for obtaining homeowners insurance to be in effect on the date of closing. Shopping around for a quote and/or best rate is also the buyer's responsibility. Obtaining homeowners insurance can be a lengthy process so this should be started immediately after home inspection issues, if any, are resolved.

Hope you enjoyed part 3 of 4 from "Buyer's Guide to Buying a Home". If you missed part 1 or 2 look in my past blogs or vist it here by clicking the links below

http://activerain.com/blogsview/902820/Four-Part-Series-Buyers-Guide-to-buying-a-home-part1 (part1)

http://activerain.com/action/channels/activerain/topics/buyers_guide_to_homebuying_part2 (part2)

Here is part 2 of this four part series:

Signing a Contract:

Your Realtor will write up the contract and the buyers will sign it first. As long as you agree with the terms completed by the Realtor (i.e. purchase price, deposit amounts, mortgage amount, closing date, items included/excluded from sale, home sale contingencies, etc.) you sign the contract and the Realtor will present it to the seller for review, acceptance, and hopefully signature.

Finding an Attorney (optional but highly recommended):

If you do not already have an attorney, ask your Realtor for some suggestions/ recommendations of a LOCAL REAL ESTATE ATTORNEY. Using a local attorney who specializes in real estate is EXTREMELY important. Call the particular attorney's office and ask to speak with the attorney or the real estate secretary. You want to inquire about their fee, what the fee includes, what else you can expect, how often can you expect to hear from them, etc. In New Jersey, you must get your fully signed contract to an attorney for review (known as the attorney review period) within three (3) days of you receiving the fully executed contract. You do not count weekends or legal holidays during this process.

Attorney Review:

Once the seller signs the the contract, the Realtor must provide the buyer a fully signed and executed contract. At that time attorney review begins. The Realtor will also provide copies to the attorneys for both the buyer and the seller. YOU DO NOT COUNT WEEKENDS OR LEGAL HOLIDAYS FOR THE THREE (3) DAY PERIOD within which the attorney has to review this contract. Changes made to the contract by either the seller's or buyer's attorney must be made within that 3 day period and are forwarded directly to the other attorney for their acceptance. Attorney review is concluded when both attorneys agree upon the changes made to the contract on the behalf of their client (buyer or seller).

Inspections:

In New Jersey, once attorney review is complete, the buyer has a time frame to conduct inspections upon the property they are intending to purchase. The time frame is usually 14 days, but can range anywhere from 7-21 days depending what the attorneys have worked out in the attorney review period. Home & termite inspections are extremely important . Almost always, if you are obtaining a mortgage, a Termite inspection is required by the lender. Unless the buyer is a qualified home inspector, builder, etc. it is very difficult to detect problems with the home that may be structural in nature of have serious ramifications in the future. YOU MUST AUTHORIZE YOUR INSPECTOR TO FAX YOUR HOME INSPECTION REPORTS TO YOUR ATTORNEY & REALTOR.
(I personally believe a home inspection is a vital step when buying a home.)

Hope you enjoyed part 2 of 4 from "Buyer's Guide to Buying a Home". If you missed part 1 look in my past blogs or visit it here by clicking this link

http://activerain.com/blogsview/902820/Four-Part-Series-Buyers-Guide-to-buying-a-home-part1

Stay tuned as Part 3 should be posted tomorrow. Thanks for visiting and reading.

Isn't this picture just magnificent. I believe this tree here in the lower left hand corner is referred to as a cherry blossom. I just love the architecture of the building. I love that Oriental look. And it is just so beautiful how it over looks the town below. The snow covered mountain justs "tops" the photo off, doesn't it? Mt. Fuji is the mountain in the background.

I have decided to write a four part series educating buyers on a step by step process to home buying. I am going to write part 1 of 4 today, and more will be to follow this week. I am going to try to post one part per day if time allows. Please check back periodically to check for updates.

HOME BUYER'S STEP BY STEP GUIDE.

Meet with a Realtor to discuss the following:

What type of home you would like to purchase; acceptable price range; a date you would preferably like close by; specific items you would want a your home to include or not include (i.e. in ground pool, central air conditioning, garage, basement, property size etc.)

Get pre-approved through a lender:

At this point, before you actually go out to look at homes, you should meet with a lender to get pre-approved. You will probably need to bring things such as 2 years tax returns, 2 years W-2, recent pay stubs, recent bank statement. You and the lender should be able to determine a ballpark idea of what you will be able to afford. This step is very important. You do not want to go out to look at homes before determining a realistic price range because if you find the home of your dreams and you can not afford it, it will be hard for any other homes to measure up to that property.

View Homes wit your Realtor:

Keep your Realtor informed as to what you like and dislike about the homes he or she is showing you. This will help them narrow the search for homes that fit your specific criteria and will assist in saving both of you time.

Offer to purchase:

You can basically consider an offer to purchase as placing a bid on a home. You and you Realtor will discuss how much you should offer. Keep in mind that there may be some negotiating during this period. You will also need to have your best and final offer in mind should a bidding war begin between you and another interested buyer.