There's Buying a Home, & There's Enjoying a Home Purchase
Hello everyone, I wanted to take a few to post about the home buying experience. I've been an Ohio Realtor for over three decades, and based in the Greater Miami Valley area or some of you might call it the Greater Dayton Metro Area, and have seen a lot when it comes to buying or selling a home.
I've had second time buyers come to me as referrals, buying their second home and their stomach is already tied up in knots, emotions running high, the occasional migraine over it, and endless anxiety about concerns. I ask and probe about their previous experience and real estate agent, and wow, just horrific.
Buying a Home Shouldn't be Scary or Unpleasant!
Buyers and first time buyers have reason to be concerned as they move forward, however, with a competent buyers' agent the whole process can be simplified, smoother, less hoops and even a pleasant and joyful experience. Let's face it, buying a home people get excited as well as anxious, and love imagining their life and belongings in the home, what color they will paint it, perhaps a little remodel here and there all the way to some grand plans for expanding, adding additions and more. Shouldn't the experience of buying a home be more like this and less like an chronic ongoing anxiety attack?
Let me share some of the things buyers find upsetting, and how competent agents can help overcome or thwart painful experiences.
Credit and Qualifying for a Home Loan
This is an issue that great, savvy Realtors should assist buyers with. Too many times I've seen inexperienced agents take unqualified buyers out house hunting, which in the moment may be kind of fun for the potential buyer, but are surprised when working with a lender, they find out some identity thief hit them hard, or that they forgot a payment here and there, or some claim was erroneously filed against their personal credit record. The very first step a Realtor should lead buyers to take after hearing their desires and wish list for a home is getting qualified with a preferred, reputable and competitive lender. Buyers for instance don't know that banks will charge you more for the loan than mortgage lenders, and mortgage brokerages. Again, Realtors should have a small army of lenders they are familiar with, with the necessary loan products, reasonable credit requirements and low fees.
Funds Needed to Close on a Home, and Total Monthly Mortgage Cost:
One of the bigger concerns mostly for first time buyers, is how much money they need. Often an inexperienced agent doesn't know that this should be probed and asked about, and also explained so there are no misconceptions, no surprises, and thus, no upset buyer who's found the perfect home, but unable to cover the out of pocket expenses beyond the down payment. There's more expense than just the down payment, there are lender fees which can vary greatly, sometimes a "re-key" fee upwards of $150.00. There's also the cost of inspections if ordered (recommended almost always), buyers that are financing are also responsible for the cost of appraisal.
A good buyer's agent is going to break this all down and give the buyer a solid idea of out of pocket expenses, and fairly accurate ballpark figure of what they'll need to bring to the closing table, a few days before closing an accurate figure down to the penny. Buyers need to know and understand these costs going in to avoid anxiety and disappointment.
Great Realtors keep an army of lenders in their back pocket and can effectively refer to one that best suits a buyers' financial situation, and too, a Realtor should explain the cost of local property taxes, Private Mortgage Insurance (for loans with less than 20% down), and too, buyers need to factor in home owners' insurance. While next to impossible to give a figure down to the penny, Realtors need to help buyers figure within 90-95% of final expenses on a purchase, and what the monthly mortgage payment will be. My personal advice to buyers after consulting and counseling them is to go for "comfortably affordable" rather than stretch to the limit. Buyers should give themselves some financial "wiggle room".
Sometimes inspections will reveal moderate to severe problems and the seller will refuse to remedy the problems. Now, buyers have the right to rescind their offer legally if the contract and offer are written correctly. You have a choice, figure the cost of remedying the problems, or walk away. Realtors should prepare buyers for this before going house hunting and scheduling showings. Too many times, I've watched buyers fall in love with a home, find out there's major issues that the seller will not address and the expense, skill or effort is over their head or means. Competent Realtors will protect your interest with an Inspection Addendum and make the offer contingent upon "satisfactory inspections" and if the buyer is not satisfied, they have a "legal out" with the contract.
Contracts and Paperwork
Many buyers look at all the forms and paperwork and have no idea where to begin or how to make sense of it. Experienced Realtors, like myself and the highly trained Ohio Realtors at Berkshire Hathaway HomeServcies - Professional Realty will take the time to sit down with a buyer, go over each element, simplify it, ensure understanding, and literally hold the buyers' hand and walk them through it. It's our job to stay on top of ever changing real estate law, shifts in lending policies, contract changes, etc. Realtors work for and professionally represent you.
These are just a few of the main issues that can be upsetting and cause for anxiety with pursuit of a home purchase. Screen a real estate agent when you're choosing one, use this blog as a reference. Of course, if you're looking in Dayton area, Beavercreek to Lebanon, Kettering or Centerville, Huber Heights or Vandalia, anywhere in the Dayton area and would like to put my 30 + years of experience and knowledge to work for you, give me a shout.
Text, call or email me, I'm glad to help.
Juanita Limes - Your Greater Dayton Area Ohio Realtor - Give me a shout for all your real estate needs,
937-776-6903 or just email me.