Buyers

Why Buyers Representation is important 

The buyer’s agent will work to negotiate the best price, work with you through the home search all the way to the closing, making sure you have the representation you need.

Things you tell a buyer’s agent remain confidential. Using a buyer’s agent also means that you will be shown homes that are not only listed on the MLS but also For Sale By Owner (FBSO).

There are a huge variety of buyer broker agreements used throughout the United States. For simplicity, we will address the types of buyer agreements used in Tennessee, with most weight given to Designated Agent for the Buyer because it’s the preferred form.

Facilitator/Transaction Broker (not an agent for either party)

The licensee is not working as an agent for either party in this consumer’s prospective transaction. A facilitator may advise either or both of the parties to a transaction but cannot be considers a representative or advocate for either party. “Transaction Broker” may be used synonymously with, or in lieu of “facilitator” as used in any disclosures, forms or agreements. [By lay, any licensee or company who has not entered into a written agency agreement with either party in the transaction is considered a Facilitator or Transaction Broker until such time as an agency agreement is established.]

Agent for the Buyer

The licensee’s company is working as an agent for the prospective buyer, owes primary loyalty to the buyer, and will work as an advocate for the best interests of the buyer. And agency relationship of this type cannot, by law, be established without a written buyer agency agreement.

Disclosed Dual Agent (for both parties)

Refers to situation in which the licensee has agreements to provide services as an agent to more than one party in a specific transaction and in which the interests of such parties are adverse.

Designated Agent for the Buyer

The individual licensee that has been assigned by his/her Managing Broker and is working as an agent for the buyer in the consumer’s prospective transaction, to the exclusion of all other licensees in his/her company. Even if someone else in the licensee’s company represents a seller in whose property the buyer is interested, the Designated Agent for the Buyer will continue to work as an advocate for the best interest of the buyers. An agency relationship of this type cannot by law, be established without a written agency agreement.

How to Not Pay Too Much for Your Home

Whether you are buying your first home, or your fifth, the process of buying a home is a detailed, time-consuming venture. At the same time, it’s an emotional period laden with difficult choices. You want to ensure that the home you purchase meets your family’s needs now, and in the future.
 
Each of these decisions often involves money. When you consider all that money represents, you’ll want to ensure that you don’t pay too much. You want to become a savvy buyer and avoid the pitfalls inherent in the home-buying process. These include such things as knowing what you want before you begin shopping, taking your time to shop, choosing the right Realtor, and remaining objective while viewing potential homes. With this information, you’ll be closer to finding your ideal home. 

Here are two important first steps when buying a home: 

• Before you shop, develop a needs vs. wants list – Everyone has a picture of an ideal home. This would include all the features you not only need, but have long desired. However, when it comes time to buying a home, the desires cost more. While it’s nice to think about having a beautifully landscaped backyard, or a solarium, perhaps even some built-in appliances, these are usually considered luxury items, which can add considerably to the price of your home.  That’s why it’s a good idea to develop a needs and wants lists. With this list, begin with items you really need like adequate space, garage and number of bedrooms. For most people, basic needs should be considered first. After that, you could consider additional desires, if you can manage these benefits financially. With such a list in your hands, you’re less likely to be caught up in the excitement of the pursuit. You’ll have a good idea of what you want, within you price range, and if you can afford those additional items.
• Get pre-approved prior to shopping – Visit your financial or lending institution prior to home buying. Quickly, you’ll know the amount of mortgage you’ll receive. Be sure to get a mortgage commitment in writing. Most importantly, you’ll tell sellers that you are a serious prospect. Depending upon market conditions, a seller may lean towards an unconditional offer. You’ll have less negotiating power if you have to wait for mortgage approval.  Banks and financial institutions have developed many programs especially for home buyers, be that first-time buyers or those with equity in their homes. When you review your needs and objectives with a lending officer, you’ll be one step closer to purchasing your home.

These are just 2 of the things to keep in mind when purchasing a home. **We will instantly email you 20 additional home buyer tips! 

Six Simple Steps to Ensure a Smooth Home Purchase

Buying a home in Nashville or the surrounding area can be an emotional, time-consuming, and complex process. However, there are a few things that you can do to help make the process go as smooth as possible:

• Check your credit – Before you apply for a home loan, regardless of your credit, it’s a smart idea to obtain a copy of your credit report from the three major credit bureaus and review the information. If there are errors or things that need to be addressed, it’s easier to address them before you have found a house, than after you have found a house and are trying to close your loan. If you know that there are a few blemishes on your credit, let your lender know what they are, why they are there, and why you are a still good credit risk. Lenders look at your credit to determine how likely you will pay back the loan. If you had extenuating circumstances – like a loss of a job or medical bills – let them know so that they understand that it is not likely to happen again in the future.
• Get approved before you buy- An approval means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you have found a home to purchase. As long as the home appraises for at least the purchase price, the loan should close.  Getting approved also gives you an advantage over other buyers. Your firm approval makes it easier for you to negotiate on the price of a home, than a person who is not approved or is pre-qualified.  While getting pre-qualified may sound official, it is really just getting an idea of what you can afford. Its having a person plug in a few numbers that you give them – your monthly income and your monthly debt – and getting an approximate payment calculated. From the payment, the calculator can approximate the house price range that you can afford. No information is verified. Because your assets, income or credit is not verified, a pre-qualification has little value when purchasing a home.
• Find a great buyer’s agent – Traditionally real estate agents represent the sellers in a transaction. When you are not working with a buyer’s agent, they are less likely to negotiate the best price or contingencies for you. A buyer’s agent’s job and fiduciary responsibility (meaning legal duty) is to you, the buyer. Before working with an agent, establish if they are a buyer’s agent or a seller’s agent. After spending a lot of time with a Realtor, it’s natural to feel like you’re a team. But if they are not negotiating for you, then they are not on your team.

**For the remaining 3 steps, simply download the full report and they will be emailed to you immediately!

Thinking About Buying Your First Home? 

You will want to Keep these critical considerations in mind:

• How long you plan to live in the home – If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home. The length of time that it will take to cover those costs depends on various economic factors in the area of the home. Most parts of the country have an average of 5% appreciation per year. In this case, you should plan to stay in your home at least 3-4 years to cover buying and selling costs. If the area you buy your home in experiences an economic up turn, the length of the time to cover these costs could be shortened, and the opposite is also true.
• How long the home will meet your needs – What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you’ll need to ensure that the home has the amenities that you’ll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, they could quickly outgrow the space. Therefore, they should consider a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you’ll need will help you find a home that will satisfy you for years to come.
• Your financial health – your credit - Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, solid lenders are more skeptical if your credit history is not good. Generally, a couple of blemishes on a credit report will make you a good credit risk and could qualify you for the lowest interest rates. If you have more than a couple of blemishes on your report, lenders like Quicken Loans may still provide you with a loan, but you may just have to pay a higher interest rate and fees.
• Home affordability – Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. This is a decision only you can make. Are you in a position where you expect to make more money soon? Would you rather be conservative and fairly certain that you can make your payment without stretching financially? Make sure that whatever you do, it’s within your comfort zone.
• Determine how much home you can afford - Talk to a lender or go online and use a “home affordability” calculator. Good calculators will give you a range of what you may qualify for. Then call a lender. While some may say that the “28/36″ rule applies, in today’s home mortgage market, lenders are making loans customized to a particular person’s situation. The “28/36″ rule means that your monthly housing costs can’t exceed 28 percent of your income and your total debt load can’t exceed 36 percent of your total monthly income. Depending on your assets, credit history, job potential and other factors, lenders can push the ratios up to 40-60% or higher. While we’re not advocating you purchase a home utilizing the higher ratios, its important for you to know your options.
• Where he money for the transaction will come from- Typically homebuyers will need some money for a down payment and closing costs. However, with today’s broad range of loan options, having a lot of money saved for a down payment is not always necessary – if you can prove that you are a good financial risk to a lender. If your credit isn’t stellar but you have managed to save 10-20% for a down payment, you will still appear to be a very good financial risk to a lender.
• The ongoing costs of home ownership- Maintenance, improvements, taxes and insurance are all costs that are added to a monthly house payment. If you buy a condominium, townhouse or in certain communities, a monthly homeowner’s association fee might be required. If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your realtor and your lender aware of your desire to limit these costs.

If you are still unsure if you should buy a home after making these considerations, you may want to consult with an accountant or financial planner to help you assess how a home purchase fits into your overall financial goals.

Avoid The Most Common Buyer Errors

Shopping for a new home is an emotional experience. It’s also time consuming and  comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process.

These errors generally fall into three areas: 

• Paying too much
• Losing a dream home to another buyer
• Buying the wrong home

If you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are a few tips on making the most of your home purchase:

• Bidding without sufficient information – What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.
• Buying a mis-matched home – What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.
• Unclear title – Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements.
• Outdated survey – Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.).
• Unexpected repairs – For $300 – $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs. Make the final contract subject to a favourable report.
• Shopping without pre-approval- It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.

Final Walkthrough Checklist

The main purpose of a General Home Inspection is to discover MAJOR VISIBLE DEFECTS on the DATE OF THE INSPECTION.  Some deficiencies may not have been apparent due to personal items, floor coverings, furnishings, foliage, etc.  Also, damage often occurs when sellers move.  The Final Walk Through is YOUR opportunity to discover any last minute issues before closing.   If you find something that appears to be a MAJOR DEFICIENCY, CALL YOUR HOME INSPECTOR.  A return visit may be necessary.

Checking the Exterior

• Take a walk around the house.  During the General Home Inspection, some deficiencies may be hidden by seller’s belongings and/or foliage.  
• Look for rot, peeling paint, damaged siding, cracks in brick veneer, etc.  These issues may have already been noted in the Inspection Report, but it’s a good idea to take another look. 
• Remember that ALL houses require a certain amount of maintenance.  Peeling paint,minor rot and cracked brick veneer are NOT considered MAJOR deficiencies in Tennessee.  They are considered deferred maintenance.  Paint, caulk, and elbow grease will remedy these issues in short order. 
• Don’t forget to ask the neighbors about any drainage problems that may exist (flooding)! If there are, you may want to check property elevations. 
• Finally, check the weep holes in the brick.  Make sure they are not plugged with mulch or soil.  Some homeowners insert steel wool into the weep holes to discourage pests.  Remove it.

Checking the Interior 

• Cracks in tiles are not usually considered a major issue.  Nevertheless, seller’s furnishings often conceal cracks. 
• Check for uneven areas in wood floors, such as buckling or depressions.  These deficiencies may be concealed by throw rugs or furnishings. 
• Cosmetic deficiencies, such as stains, are very difficult to fix.  Especially stains caused by pets. 
• Look for cracks in walls that may have been concealed by furnishings, drapes, or pictures.  Common cracks are not considered a major issue. 
• Check double pane windows for condensation.  This problem is difficult to see when there are drapes and blinds.  Also look for broken glass which may not have been apparent during the General Home Inspection.  This is an excellent opportunity to lubricate all the window slides and latches.  Peeling paint around window frames and mullions may signal a lead paint hazard in older homes. 
• Open and close ALL the doors – Most doors are operated during the General Home Inspection.  However, sellers often remove doors to make furniture removal easier.  Also doors get bumped by movers.  Doors that do not latch are not considered a major problem and generally require an adjustment to the hinges and/or latch assembly.  Pocket doors rarely work properly.  Clean, adjust, and lubricate tracks and hardware. 
• If there is an upstairs, be sure and check the handrail in the stairway – Furniture movers often bump the handrail causing the hardware to become loose.  Sometime they remove and replace the handrail.  Make sure it’s secure. 
• Check ALL smoke detectors and the security system for proper operation – Install additional smoke detectors if appropriate.  Inexpensive battery units work very well.  One in each bedroom, hall, dining, and laundry. 
• Microbial growth (mold) is outside the scope of a General Home Inspection – Mold can grow in a very short time (48 hrs.).  When a house is closed up, and central air conditioning is not in use, high humidity may encourage mold growth.  Pay special attention to any discoloration on surfaces that may signal microbial growth, especially near water. (baths, laundry, kitchen, etc.)
• Attic – Some attics are not easily accessed.  However, if there is a drop stair or a closet opening, it’s a good idea to take a look.  This gives you a chance to evaluate storage space.  Look for any apparent problems which may have been hidden by seller’s belongings during the General Home Inspection.  If you discover a major deficiency, or something appears out of order, call your Home Inspector.  Most attics have no flooring, and walking between floor joists can be very dangerous.  Also, drop stairs are usually substandard.  Exercise caution when climbing the drop stair. 
• Electrical- Walk through the house and turn on ALL the lights and ceiling fans.   Check for spent bulbs and wobbling fans.  Check ALL switches and electrical outlets.  Make sure cover plates are in place.  Some may have been damaged during the move, or were concealed by furnishings.  If the dwelling has two prong outlets, consider grounding those outlets that will service electronic equipment.  ALL outlets near water or on the exterior walls should be grounded and/or upgraded to GFCI’s. (Ground Fault Circuit Interrupter)  If the Water Heater is electric, make sure it’s on.  If the circuit breaker box is not labeled, this is a great opportunity to do so.
• Heating/Air Conditioning – With the house empty, the A/C system is cooling a larger volume of air.  Don’t be surprised if the house feels hotter than it did when furnished.  This is typical.  People are coming and going, doors are open, etc.  However, if the system doesn’t appear to be doing the job, it may be prudent to have it serviced before you close.  Your best insurance against A/C failure is a Maintenance Contract with a qualified A/C contractor.  Note: The A/C will always fail on the hottest day of the summer, during a long weekend, when you have a house full of company.  If it’s winter time, activate the furnace and check that warm air is exiting the supply registers in the ceiling.  Check that the A/C thermostat wasn’t damaged during the seller’s move.
• Kitchen- Test the sink fixtures and sprayer. Look below the sink for mold, stains, or moisture damage .  During the General Inspection there are usually a zillion cleaning products, sponges, trays, etc. below the sink.  Your Inspector may not have seen stains or moisture damage.  If mold is present, clean the area with detergent and/or fungicide.  (Tilex)  Run the dishwasher through a complete cycle during the walk through.  Also try the stove top burners and oven.  Built-in microwave ovens are not usually tested during the General Home Inspection.  Fill a cup with water and operate the Microwave oven for one minute.  Look inside ALL the cabinets and pantries.  Dishes and other belongings may have concealed damage when the house was occupied. (Mold)  Check the laundry for moisture damage and mold.  During the General Inspection the floor and wall were partially concealed by the washer and dryer, and not easily viewed by the Home Inspector.  If appliances are in place, run them through a complete cycle.  You may wish to pull the washier and dryer away from the wall and rescue all the socks that have fallen on the floor.  If you find lots of money&.give it to me.  It fell out of my pocket during the Home Inspection.
• Bathrooms- Test all the fixtures at lavatories, bathtubs, and showers.  Check all the popup drains.  Rarely do all popups work.  Fill lavatories and check that they drain.  During the move, sellers often allow debris to accumulate in the lavatory.  It ends up in the drain trap.  Fill the bathtubs and check that the overflows are not leaking.  Overflows are not tested during the General Home Inspection.  This test is especially important for bathtubs upstairs, since ceilings may be moisture-damaged if overflows fail.  If there is a whirlpool tub, fill and test it.  Look inside ALL vanities for mold or moisture damage.  Damage may have been concealed by the seller’s belongings.  Operate ceiling ventilator/heater units.

Your Home Inspector does his best to note ALL deficiencies.  However, emphasis is put on Major Deficiencies.  The definition of major and minor deficiencies is often a matter of perspective.  We will go over your concerns and resolve any issues that may linger.  Enjoy your new home

To Leave Satisfied You Must Arrive Prepared

In most businesses, knowledge equals power, and real estate is certainly no exception.  I hope you learn a little more about what it takes to make your important purchase a great one.  All of the information about buying a home can be overwhelming. We are here to help!

Glossary of Terms

There are lots words that will be used and many terms which are specific to the Real Estate market.  Please click here to be connect to the Realtor.com glossary of terms.

Nashville TN Real Estate and Surrounding Area

When you are ready to Buy or Sell Property in Tennessee then you are ready for the Tennessee Real Estate Professionals Diane O and Friends. 

• We  fight on behalf of our  buyers
• We negotiate the absolute best price
• We protect you
• We simplify your transaction for you as much as possible

For more information about Diane O and Friends and our real estate services please fill out the online contact form or give us all call.

Office: 615-371-1544
Diane Cell Phone: 615-406-2184
Mandy Cell Phone: 615-477-6959
Fax: 615-472-7931