Your “Home Buyer Kit”
Step 1 of 3 – Gathering the Facts
Steven W. Nelson
“If it’s important to you,
it’s important to me!”
Tel: 919-256-6550
Cell: 919-604-6135
Fax: 919-676-4684
Web: www.StevenNelsonHomes.com
Email: StevenW@IdaTerbet.com
~ Here is where it all begins! ~
Thank you for the opportunity to discuss your real estate needs! I think you’ll find a big difference in the way I conduct business. Buying a home in this market is a cooperative venture that requires thorough communication and teamwork. When we meet, I will clearly explain the idiosyncrasies of buying a home in the Charlotte market, how I represent you, what I do and don’t do, what you should and should not do, and what you can expect during the process. If you have any specific issues you’d like to address, please make note of them now and bring them to my attention at our first meeting. I will make sure that all of your questions are answered to your satisfaction!
Please take a few minutes of your time to review this packet carefully. This Step 1 Kit contains carefully selected materials that begin the process of coaching you and advising you on all of the information you’ll need to be a highly informed buyer, and to help you avoid the most common mistakes that home buyers make. I look forward to our first meeting!
If you need any additional information before we meet, please don’t hesitate to contact me.
At your service,
Steven W. Nelson, Certified P.N.P., REALTOR®
Keller Williams Realty
Cell: 919.604.6135
Fax: 919.676.4684
Email: StevenW@IdaTerbet.com
Website: www.StevenNelsonHomes.com
|
YOU NEED THE PROTECTION AND SERVICE OF A FIDUCIARY!
|
||||||||||
|
||||||||||
|
READ THIS NOTICE CAREFULLY!
THIS MAY BE THE MOST IMPORTANT
PART OF THIS PACKAGE. THIS NOTICE
IS FOR YOUR OWN PROTECTION!
|
||||||||||
Recent changes in
One of the most important things they did was to create a brochure called Working with Real Estate Agents. ALL real estate agents are required by law to present this brochure to a potential client “at first substantial contact”, and there is a wide difference in opinion about when that occurs. I firmly believe that your best interests are served if you are an informed and empowered consumer from day one. If I know something that you should know, you will know it NOW. For this reason, I am including the “Working with Real Estate Agents” brochure immediately following this notice and I want you to read it now. Other real estate agents ARE doing this for you, aren’t they?
The law also requires that we not only provide the brochure, but that we review it with you when we meet. That’s exactly what I will do. In the mean time, PLEASE DO NOT DISCLOSE ANY CONFIDENTIAL INFORMATION ABOUT YOUR REASON FOR BUYING OR YOUR WILLINGNESS TO PAY A CERTAIN PRICE until you have chosen who will represent you in the purchase of your home! Once you have selected a REALTOR® to serve as your Fiduciary and your Exclusive Buyer Agent, you can, and should freely discuss anything since you are protected much like an attorney-client privilege. We will go over this again when we meet in person!
Working With Real Estate Agents
Standard Form No. 520
WORKING WITH REAL ESTATE AGENTS
NOTE: Effective July 1, 2001, in every real estate sales transaction, a real estate agent shall, at first substantial contact directly with a prospective buyer or seller, provide the prospective buyer or seller with the following information [NC Real Estate Commission Rule 21 NCAC 58A.0104(c)].
When buying or selling real estate, you may find it helpful to have a real estate agent assist you. Real estate agents can provide many useful services and work with you in different ways. In some real estate transactions, the agents work for the seller. In others, the seller and buyer may each have agents. And sometimes the same agents work for both the buyer and the seller. It is important for you to know whether an agent is working for you as your agent or simply working with you while acting as an agent of the other party. This brochure addresses the various types of working relationships that may be available to you. It should help you decide which relationship you want to have with a real estate agent. It will also give you useful information about the various services real estate agents can provide buyers and sellers, and it will help explain how real estate agents are paid.
SELLERS
Seller’s Agent
If you are selling real estate, you may want to “list” your property for sale with a real estate firm. If so, you will sign a “listing agreement” authorizing the firm and its agents to represent you in your dealings with buyers as your seller’s agent. You may also be asked to allow agents from other firms to help find a buyer for your property. Be sure to read and understand the listing agreement before you sign it.
Duties to Seller: The listing firm and its agents must ?? promote your best interests ?? be loyal to you ?? follow your lawful instructions ?? provide you with all material facts that could influence your decisions ?? use reasonable skill, care and diligence, and ?? account for all monies they handle for you. Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents without your permission. But until you sign the listing agreement, you should avoid telling the listing agent anything you would not want a buyer to know.
Services and Compensation: To help you sell your property, the listing firm and its agents will offer to perform a number of services for you. These may include ?? helping you price your property ?? advertising and marketing your property ?? giving you all required property disclosure forms for you to complete ?? negotiating for you the best possible price and terms ?? reviewing all written offers with you and ?? otherwise promoting your interests. For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.
Dual Agent
You may even permit the listing firm and its agents to represent you and a buyer at the same time. This “dual agency relationship” is most likely to happen if an agent with your listing firm is working as a buyer’s agent with someone who wants to purchase your property. If this occurs and you have not already
agreed to a dual agency relationship in your listing agreement, your listing agent will ask you to sign a separate agreement or document permitting the agent to act as agent for both you and the buyer.
It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party. Some firms also offer a form of dual agency called “designated agency” where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each “designated agent” to more fully represent each party. If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of what your relationship is with the dual agent and what the agent will be doing for you in the transaction.
BUYERS
When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer’s agent). You may be willing for them to represent both you and the seller at the same time (as a dual agent). Or you may agree to let them represent only the seller (seller’s agent or subagent). Some agents will offer you a choice of these services. Others may not.
Buyer’s Agent
Duties to Buyer: If the real estate firm and its agents represent you, they must ?? promote your best interests ?? be loyal to you ?? follow your lawful instructions ?? provide you with all material facts that could influence your decisions ?? use reasonable skill, care and diligence, and ?? account for all monies they handle for you. Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer’s agent, they may not give any confidential information about you to sellers or their agents without your permission. But until you make this agreement with your buyer’s agent, you should avoid telling the agent anything you would not want a seller to know.
Unwritten Agreements: To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do for you, you may want to have a written agreement. However, some firms may be willing to represent and assist you for a time as a buyer’s agent without a written agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written agency agreement. If you do not sign it, the agent can no longer represent and assist you and is no longer required to keep information about you confidential. Furthermore, if you later purchase the property through an agent with another firm, the agent who first showed you the property may seek compensation from the other firm. Be sure to read and understand any agency agreement before you sign it.
Services and Compensation: Whether you have a written or unwritten agreement, a buyer’s agent will perform a number of services for you. These may include helping you ?? find a suitable property ?? arrange financing ?? learn more about the property and ?? otherwise promote your best interests. If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller.
A buyer’s agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if
the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer’s agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.
Dual Agent
You may permit an agent or firm to represent you and the seller at the same time. This “dual agency relationship” is most likely to happen if you become interested in a property listed with your buyer’s agent
or the agent’s firm. If this occurs and you have not already agreed to a dual agency relationship in your (written or oral) buyer agency agreement, your buyer’s agent will ask you to sign a separate agreement or document permitting him or her to act as agent for both you and the seller. It may be difficult for a dual
agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.
Some firms also offer a form of dual agency called “designated agency” where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each “designated agent” to more fully represent each party. If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of ?? what your relationship is with the dual agent and ?? what
the agent will be doing for you in the transaction. This can best be accomplished by putting the agreement in writing at the earliest possible time.
Seller's Agent Working with a Buyer
If the real estate agent or firm that you contact does not offer buyer agency or you do not want them to act as your buyer agent, you can still work with the firm and its agents. However, they will be acting as the seller’s agent (or “subagent”). The agent can still help you find and purchase property and provide many of the same services as a buyer’s agent. The agent must be fair with you and provide you with any “material facts” (such as a leaky roof) about properties. But remember, the agent represents the seller – not you – and therefore must try to obtain for the seller the best possible price and terms for the seller’s property. Furthermore, a seller’s agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are sellers’ agents before you say anything that can help the seller. But until you are sure that an agent is not a seller’s agent, you should avoid saying anything you do not want a seller to know. Sellers’ agents are compensated by the sellers.
WORKING WITH REAL ESTATE AGENTS
This is not a contract
By signing, I acknowledge that the agent named below furnished a copy of this brochure and reviewed it with me.
____________________________________________ ________________________________________
Buyer or Seller Name (Print or Type) Buyer or Seller Name (Print or Type)
____________________________________________ _________________________________________
Buyer or Seller Signature Buyer or Seller Signature
____________________________________________ _________________________________________
Date
Keller Williams Realty__________________________
Firm Name
Steven W. Nelson_____NC Lic. # 177062___________
Agent Name
Disclosure of
When showing you property and assisting you in the purchase of a property, the above agent and firm will represent the SELLER.
For more information, see “Seller’s Agent Working with a Buyer” in the brochure.
Buyer’s Initials Acknowledging Disclosure: ______________
Agents must retain this acknowledgment for their files.
~ HOME BUYER INTERVIEW ~
Please, use this form to introduce yourself to Steven W. Nelson and The Ida Terbet Team. All information provided is considered proprietary and is maintained in the strictest confidence. This is for OUR use only!
Date: ___________
Name(s): ______________________________________________
Address: _______________________________________________________________
City: ________________________________ St: _____________ Zip: _____________
Home Phone: __________________________
His Work Phone: ________________________
Her Work Phone: ________________________
His Cell Phone: ________________________
Her Cell Phone: ________________________
Preferred Email Address: _________________________________________________
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
1. Are you working with a Realtor® now? ________. If yes, have you signed “Buyer Agency Agreement” with him/her? _______________.
2. What is your idea of a great Realtor®? _________________________________
________________________________________________________________
Have you ever bought or sold a home before? _____. Was it with a Realtor®? _____. Will you please take a moment to tell me how you felt about your experience. (I want to make sure this experience is exceptional!)
3. Are you are paying cash? ______. If so, I’ll need a letter on bank letterhead signed by someone with the authority to state that you have sufficient funds on deposit to make a purchase of $XXX. Will you please provide this for me before we look at homes? _______. If you’re going to obtain a mortgage, arranging financing is our most important task before we begin! If you have a pre-approval letter from a lender you prefer, I’ll need that before we look at homes! Will you please fax that to me at 704-409-4814? _______. If you don’t already have that letter, may I have our preferred lender contact you for a free pre-qualification now? _______.
4. What method of communication you prefer: Email ____ Telephone ____ Please tell us when and where you prefer to be called, and/or NOT to be called.
________________________________________________________________
5. How soon do you want to be settled into your new home? __________________ Why are you buying now? ___________________________________________
How long do you THINK you will be staying in this next home? ______________
6. Our home search will take however long it takes, but, if we were lucky enough to find the right home right away, is there anything that would prevent you from buying right away? _____. If so, what? ________________________________
Is there anyone else involved in this decision with you? _____. If so, whom?
_________________________________________. They will need to accompany us on your home tours!
7. Do you need to sell your current home? _____. If so, may I refer you to a great Realtor® in your area? _______. If you are leasing, when does your lease expire? _______________. How much is your rent? ____________/month.
8. In detail, please try to describe your current home or apartment to me in your own words. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
9. Please describe what you like and dislike most about your current home.
Like Most:
________________________________________________________________________________________________________________________________
Dislike Most:
________________________________________________________________________________________________________________________________
10. Are you participating in a corporate relocation? ________. If yes, I need to contact your relocation counselor as soon as possible. Please provide the person’s name, phone number and email address. _______________________
________________________________________________________________.
11. Now, in detail, please try to describe your next home to me. The more detail you provide, the better! ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
12. Please describe what will be the most and least important about your new home. Most:____________________________________________________________________________________________________________________________Least:___________________________________________________________________________________________________________________________
13. Where is your workplace located now, or going to be located? Your “significant other’s” workplace (if applicable)? What would you consider to be reasonable for a drive-time to work? ________________________________________________________________
________________________________________________________________
14. Please list your wants and needs for the features listed below: _______________
WANT NEED
# Bedrooms ........................... ………… __________ __________
# Baths ….. ........................... ………… __________ __________
Parking Facilities ................................. __________ __________
New or Existing Home ......................... __________ __________
Maximum Age of Home ........................ __________ __________
Floorplan or Style .................................. __________ __________
House/Condo/Townhome........................ __________ __________
Minimum Square Feet .............................. __________ __________
Exterior Construction ............................ __________ __________
Waterfront/Water view ........................... __________ __________
On Golf Course ........................................ __________ __________
Golf Course View ..................................... __________ __________
Country Club............................................. __________ __________
Other……….............................................. __________ __________
Other……….............................................. __________ __________
Other……….............................................. __________ __________
15. Do you have any special needs? (particular house of worship, medical care, special education options, handicap accessible properties, special rooms, office in home, particular neighborhoods, particular schools, etc): ________________________________________________________________________________________________________________________________
16. Is there a particular area of town that you prefer? (i.e.- Area 5, uptown area,
________________________________________________________________________________________________________________________________
17. What is your target price range? $_________________ to $________________
18. If there is anything I have not addressed here that will help me understand your “perfect home”, please discuss it here. _________________________________
________________________________________________________________________________________________________________________________
19. If I do a great job for you, may I use you as a reference in the future? _________
20. Although it is optional, I ask that you list the date of birth for everyone in your household so I can honor you on your birthday each year…“if it’s important to you, it’s important to me!” ________________________________________
________________________________________________________________
21. I am closely associated with a carefully selected group of business people that I trust and respect. I can most likely offer you a referral to someone for just about any need you may have. Before you resort to the Yellow Pages, please ask me for a referral!
22. Would you be interested in receiving new listings by email as homes meeting your criteria come on the market? _________________________________
23. I hope you’ll visit Joe on the web at StevenNelsonHomes.com or Ida on the web at www.IdaTerbet.com because we have placed many very informative links about
24. If you’d like to help me even more, please tell me a little about you and your family to help me understand what activities you enjoy, what kind of neighborhood appeals to you, what you like to do inside/outside your home in your spare time, what kind of neighbors you like, etc. In other words, anything that I have not already asked you think will help me understand you, your wants and needs! ______________________________________________________
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
25. Do you have any recommendations on how I can improve this interview form or our procedures in general? _________________________________________
_______________________________________________________________
~ Here are some of the things we may discuss when we meet ~
(be sure to bring this list with you!)
q The Ida Terbet Team – Who we work with and what they do for you!
q Mortgage Money – shopping for low rates; mortgage brokers; online lenders; the value of having a relationship with your lender
q The use of credit after you apply for your loan
q The Law of Agency and how all real estate agents work (“FSBO’s”, builders, other company listings, etc)
q Earnest money, or the "binder" check
q When I find the right house, how much should I offer?
q The selection process for homes we will see (the 5 tests!)
q Multiple Offers and Negotiations
q Buying a new home from a builder? Let’s discuss “Free money”, “free closing costs”, and other gimmicks
q Legal/Safety Concerns (radon, synthetic stucco, aluminum wiring, Polybutylene piping, lead based paint, etc)
q Review of Offer to Purchase and Addenda (Inspections, Loan Contingencies, Alternative 2)
q Home Warranties – What They Can Do For You and Why You Need One
q Do you need a survey?
q What if the appraisal comes back below the sales price?
q Homeowner’s insurance issues (HO-3 policies, HE-7 and HE-21 policies)
q The advantage of TWO title searches
q What to do, what NOT to do when we look at homes
Home Warranties Can Aid
Both Buyer and Seller
|
M
|
any home purchasers erroneously assume that the Seller is always somehow liable when there is a defect or failure found in the home’s cooling, heating, plumbing, electrical and/or appliances after the Buyer moves in. Unless otherwise provided for in the contract however, risk of loss often falls on the Buyer. Even where the contract provides that heating, plumbing, pool & equipment, electrical, etc. be “operative” on or until date of possession, disputes can always arise as to when the breakdown occurred, who is responsible, how the repairs are to be funded, and when they are to be made.
|
H
|
ome warranty plans go a long way to alleviate these risks and concerns. For a modest price (currently basic coverage is $400 to $450, and sometimes slightly more for optional coverage). Sellers or buyers can elect to purchase a one-year warranty covering specified heating, plumbing, electrical, water heater or appliance breakdowns. If the seller is not offering a warranty or refuses to do so, you should consider purchasing one yourself. Additionally, they are usually renewable year after year. In all cases, there are important limitations and exclusions (example: appliances/systems must be operative at commencement of coverage). Let’s make a decision regarding this now! Remember, it’s too late to opt for coverage once the covered system fails.
(the following is a document that ALL agents should provide to you)
Questions and Answers on Home Inspections
For most persons, purchasing a home is the largest investment they will ever make. It is no wonder then that many homebuyers employ professionals to inspect the structural and mechanical systems of the home and report to them on their condition. Sometimes sellers also employ Home Inspectors to alert them to problems with their homes which could arise later in the transaction. But normally Home Inspectors are employed by buyers. For this reason, this brochure is written from the viewpoint of the potential homebuyer.
This brochure is a joint publication of the North Carolina Home Inspector Licensure Board and the North Carolina Real Estate Commission designed to give consumers a better understanding of the home inspection process. What a home inspection is, who can perform an inspection and what to expect. If you have further questions regarding home inspections and Home Inspectors, you should contact the North Carolina Home Inspector Licensure Board,
Questions
· Can anyone perform a home inspection?
· Why should I have the home inspected?
· How do I request a home inspection, and who will pay for it?
· Should I be present when the home inspection is performed?
· Are all inspection reports the same?
· What should I do if I feel something has been missed on the inspection?
Answers
What is a home inspection?
It is an evaluation of the visible and accessible systems and components of a home (plumbing system, roof, etc.) and is intended to give the client (usually a homebuyer) a better understanding of their condition. It is also important to know what a home inspection is not! It is not an appraisal of the property's value; nor should you expect it to address the cost of repairs. It does not guarantee that the home complies with local building codes (which are subject to periodic change) or protect you in the event an item inspected fails in the future. [Note: Warranties can be purchased to cover many items.] Nor should it be considered a "technically exhaustive" evaluation, but rather an evaluation of the property on the day it is inspected, taking into consideration normal wear and tear.
Can anyone perform a home inspection?
No. Only persons licensed by the North Carolina Home Inspector Licensure Board are permitted to perform home inspections for compensation. To qualify for licensure, they must satisfy certain education and experience requirements and pass a state licensing examination. Their inspections must be conducted in accordance with the Board's Standards of Practice and Code of Ethics.
Why should I have the home inspected?
Most homebuyers lack the knowledge, skill and emotional detachment needed to inspect homes themselves. By using the services of a licensed Home Inspector, they can gain a better understanding of the condition of the property, especially whether any items do not "function as intended” or "adversely affect the habitability of the dwelling” or "warrant further investigation" by a person who specializes in the item in question.
In my home purchase I have chosen to sign the standard Offer to Purchase and Contract* form which many real estate and legal professionals use. It states that I have the right to have the home inspected and the right to request that the seller repair identified problems with the home. Will the home inspection identify all of these problems?
*Jointly approved and copyrighted by the North Carolina Association of REALTORS® and the North Carolina Bar Association.
Home Inspectors typically evaluate structural components (floors, walls, roofs, chimneys, foundations, etc.), mechanical systems (plumbing, electrical, heating/air conditioning, installed appliances and other major components of the property. The Home Inspector Licensure Board's Standards of Practice do not require Home Inspectors to report on: wood-destroying insects, environmental contamination, pools and spas, detached structures and certain other items listed in the Offer to Purchase and Contract form. Always ask the Home Inspector if he covers all the things which are important to you. If not, it is your responsibility to arrange for an inspection of these items by the appropriate professionals. For a description of the services to be provided by the Home Inspector (and their cost), you should read carefully the written contract which the Home Inspector must give you and which you must sign before the Home Inspection can be performed.
How do I request a home inspection, and who will pay for it?
You can arrange for the home inspection or ask your real estate agent to assist you. Unless you otherwise agree, you will be responsible for payment of the home inspection and any subsequent inspections. If the inspection is to be performed after you have signed the purchase contract, be sure to schedule the inspection as soon as possible to allow adequate time for any repairs to be performed.
Should I be present when the home inspection is performed?
Whenever possible, you should be present. The inspector can review with you the results of the inspection and point out any problems found. Usually the inspection of the home can be completed in two to three hours (the time can vary depending upon the size and age of the dwelling). The Home Inspector must give you a written report of the home inspection within three business days after the inspection is performed (unless otherwise stated in your contract with the Home Inspector). The home inspection report is your property. The Home Inspector may only give it to you and may not share it with other persons without your permission.
Are all inspection reports the same?
No. While the Home Inspector Licensure Board has established a minimum requirement for report-writing, reports can vary greatly. They can range from a "checklist" of the systems and components to a full narrative evaluation or any combination of the two. Home Inspectors are required to give you a written "Summary" of their inspection identifying any system or component that does not function as intended, or adversely affects the habitability of the dwelling, or appears to warrant further investigation by a specialist. The summary does not necessarily include all items that have been found to be defective or deficient.
Therefore, do not read only the summary. Carefully read and understand the entire home inspection report.
What should I do if I feel something has been missed on the inspection?
Before any repairs are made (except emergency repairs), call the inspector or inspection company to discuss the problem. Many times a "trip charge" can be saved by explaining the problem to the inspector who can answer the question over the telephone. This also gives the inspector a chance to promptly handle any problems that may have been overlooked in the inspection.
If, following the home inspection, the seller repairs an item found in the home inspection, may I have the Home Inspector perform a "re-inspection"?
Yes. Some repairs may not be as straightforward as they might seem. The inspector may be able to help you evaluate the repair, but you should be aware that the re-inspection is not a warranty of the repairs that have been made. Some Home Inspectors charge a fee for re-inspections.
The
Home Inspector Licensure Board
919/875-3700
919/715-0991
Web Site: www.ncrec.state.nc.us
