1) How much money should a buy have saved up to purchase a home?
a. There are down payment assistance programs where a buyer can get a grant for their down payment and purchase with only $1000 out of pocket. However, they will still need about $300 for an inspection.
b. For most buyers they will need the following:
- Earnest Money Deposit – Typically 1% of the Purchase price but it is Negotiable
- Money for an Inspection – Typically $300, sometimes $500 if they have to check out a well or sewer scope.
- Down Payment – could be anywhere from ZERO to 20% down
- Loan Closing Costs – Those run about 1-2% of the Loan amount
- These can be negotiated as a part of the loan as a seller expense
- Buyers can raise the sales price and have seller pay their closing costs, but really it’s the buyer in the form of a price higher than asking price.
- Moving Expenses
What does an agent do with regard to NEGOTIATIONS?
a. You are an attorney so I know you understand the meaning of Fiduciary. It means put the needs of their clients ahead of their own.
b. #5 Things agents should NEGOTIATE FOR THE BUYERs:
- Initial contract negotiations
2. Inspection items
3. Appraisal objections (if any)
c. Some agents take this word ‘fiduciary” WAY TOO FAR, so much so they try to derail the contract at every step of the way, without regard to whether the buyer wants it or not.
f. On our team we make sure we first consult with our buyers and what THEY want with regard to negotiations. We are not trying to TALK THEM OUT OF BUYING THE HOUSE.
g. With new construction, we attend the difference phases and meetings the builders set up. This is one of the largest investments in their lives and we are getting paid to help them make this investment. Its important to our team to support our clients and their needs in every way.
5) What are some things you find that help buyers through the process?
- Keep in mind that people are going through a tremendous amount of stress and try to make the process as well planned out and smooth. Eg:
- Help coordinate getting their funds the right way at closing. (who is the check made out to) Communicating the purpose of the walk through.
- The final walk through is not a new inspection, the contract says:
- Should any Inclusion or service (including utilities and communication services), system, component or fixture of the Property (collectively Service) (e.g., heating or plumbing), fail or be damaged between the date of this Contract and Closing or possession, whichever is earlier, then Seller is liable for the repair or replacement
- Walk Through: Buyer, upon reasonable notice, has the right to walk through the Property prior to Closing to verify that the physical condition of the Property and Inclusions complies with this Contract.
- Give Buyer Information about Transferring Utilities
- Most of all, make the closing a happy occasion, its a huge event for home buyers and very exciting and fun.