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Magnitude Realty |
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Buy On Your Terms MAGNITUDE REALTY is also a smart way to buy. We can help you buy any property on the market. MAGNITUDE REALTY puts you in the driver's seat, giving you tools to search for properties on your own and leaving the choice of when to involve one of our licensed real estate professionals up to you. Preview over thousands of properties around the country on my website.We'll even send you an email when a home matching your dream house comes on the market. 1. Consult with a MAGNITUDE REALTOR.
2. If you have not arranged for a lender already, an appointment will be scheduled with a lender where you will discuss loan programs and obtain pre-approval. 3. Develop a list of needs and wants with your MAGNITUDE REALTOR and then begin your home selection process. 4. Choose a home, then let your MAGNITUDE REALTOR begin the negotiation process on your behalf. 5. Great news! Your offer has been accepted! Your MAGNITUDE REALTOR will track the progress of your loan and make sure all contract details and/or contingencies are met on time. 6. Your MAGNITUDE REALTOR will attend any inspections with you and discuss results. 7. The Realtor will call with the time and place of your closing. You will also receive information regarding any money due at signing. The MAGNITUDE REALTOR will be at your closing to assist with any last minute concerns. 8. Congratulations on your new home! Once you're settled, a Home Services Specialist will contact you to offer assistance or recommendations for your new home's needs. "BUYERS RIGHTS"
Every buyer of real estate has certain rights regarding the purchase of a property. The following is a summation of those rights: 1. You have the right to be represented by a real estate agent, exclusive or otherwise, to protect your best interests. 2. You have the right to purchase any/all properties that you choose, without being discriminated against by a Seller on the basis of your race, color, religion, handicap, familial status, or national origin. 3 . You have the right to complete disclosure of all property information, including, but not limited to, water supply, insulation, waste disposal system and hazardous materials. 4. You have the right to ask for information regarding the previous year's property taxes, and/or maintenance and fuel costs. 5. You have the right to receive a market price comparison analysis for the properties you wish to make offers on, prior to signing the offer. 6. You have the right to receive a copy of the Agreement of Sale, prior to signing it, to allow you time to have it reviewed by an attorney. 7. You have the right to choose the lender that will finance the property and to receive full disclosure from that lender regarding the type and term of the loan and the true cost of the loan. 8. You have the right to test and/or inspect the property's systems and to choose the person(s) to complete those tests or inspections. 9. You have the right to walk through the property one last time prior to closing to confirm it meets the conditions of the Agreement of Sale. 10. You have the right to use the homeowner's insurance company of your choice. 11. You have the right to purchase personal coverage title insurance from the company of your choice. 12. You have the right to purchase a home warranty program from the provider of your choice. 13. You have the right to review the Settlement Statement prior to closing. BUYERS FACTS
The Facts 1. The Seller's motivation, current market conditions, types of financing, and average length of time for properties on the market are some of the key factors impacting the negotiating process. Please discuss these with the Broker/Agent prior to signing an offer, counter offer or withdrawal 2. Recognize the competitive nature of the real estate market and the likelihood of competing offers. Realize that in a competing offer situation, only one offer will result in a sale and one or more Buyers may be disappointed. 3. It is very important to accept that a Seller is not obligated to acknowledge, counter or reject an offer. In addition, a Seller may or may not inform other Buyers of the existence of an offer to obtain better terms or price. 4. Confirm with your Broker about how decisions will be made, negotiated or presented for offers, counter offers or withdrawals. Remember that decisions are made by the Buyer.
WHAT IS VALUE?
What's its Value:
Value means different things to different people, depending on how they are involved in a real estate transaction. The Buyer may have stars in their eyes and see the castle of their dreams when they look at the property they are purchasing. Assessed Value
The tax assessor will see a very different picture.
The assessor wants to create value equality among the town or city's citizens in order to fairly assess taxes and share the tax burden in an equitable manner amongst all property owners. Towns periodically undertake re-evaluations to update their assessed market valuations for all property. While based upon historical sales data, it does not always represent current market data. It is a useful tool in comparing the values of similar properties.
Appraised Value
Appraisers must protect the interest of the lender and therefore must be more conservative in the value they place on a property. The appraised value is more typically based upon historic sales data and may or may not agree with market value.
Market Value
Market value is what a ready, willing, and able buyer pays to a ready, willing and able seller in a transaction with no undue influences. It is a negotiated value which changes relative to market conditions, supply of homes, demand, and seasonality in some cases. Market value is created by the buyer and seller. Too often, buyers and sellers have a notion some other factor determines market value, when in reality, those two parties determine market value.
The Importance Of Prequalification
Almost all homebuyers, especially first-time buyers, want to buy the home of their dreams. They are eager to rush out and see the best that is available. While their excitement and enthusiasm is understandable, it is not always beneficial. Viewing properties that are not within the buyer's correct price range is a waste of everyone's time, and always leads to disappointment. Lenders will never allow any buyer to purchase a property that they cannot afford. Affordability is based on many factors, not just income. Credit ratings must be looked at, how much debt a person has must be factored in, and not all mortgage programs have the same rate of interest. That's why pre-qualification is important. Once all factors have been examined, a lender will provide a buyer with a monthly payment amount that fits the buyer's means, and that saves time for everyone. Pre-approval is also very important. It is a preliminary commitment from the lender, that based on your application and the documentation you have provided, you stand a very good chance of getting final approval for your loan, pending appraisal. If you were a seller and two buyers made an offer on your property, would you choose the buyer who has a letter of pre-approval from a lender attached to their offer, or would you risk selling to the buyer who has not been pre-approved and is perhaps not even pre-qualified? OFFER GUIDELINES
Communication Is Very Important Each Buyer should discuss the offer and negotiation process with their MAGNITUDE REALTOR during the initial counseling process and before any offer is presented. This will ensure that the Buyer understands the process, the possibility of competing offers, and what the Seller's options are.
Broker Advises And Buyer Decides
All decisions about how offers will be presented, negotiated and ultimately accepted, are made by the Buyer and/or Seller, NOT the MAGNITUDE REALTOR. The MAGNITUDE REALTOR will communicate the offer, advise and keep their respective client informed of all activities. They will NOT make the decisions. The Buyer makes the decisions.
Offers In Writing
All offers and counter offers should be in writing to ensure that the terms, time frames and legal obligations of the parties are clearly understood and communicated without misunderstanding, withdrawals, counter offers and/or any changes to offers should be done in writing, signed and dated.
Confidentiality
The terms of all offers, counter offers, withdrawals and terminations may not be disclosed by the MAGNITUDE REALTOR without the prior consent of both the Buyer and Seller.
Existence Of Offers
The Seller decides whether the Seller and Broker is able to disclose that another competing offer has been received, contemplated, or is being negotiated. The Buyer's Broker will disclose this information to the Buyer if it is received. The Buyer is NOT entitled to this information without express permission from the Seller.
Full Price Offers
The Seller is NOT obligated to sell the property even if the Buyer makes a full price, contingency-free offer.
Priority Of Offers
The first or highest offer made does not bind or otherwise limit the Seller to act upon that offer before considering other offers. There is no priority of offers. The Seller makes all decisions.
Brokers And Attorneys
Brokers are NOT Attorneys! Brokers advise Buyers and Sellers to seek legal counsel from Attorneys regarding any question about the legal status of an offer, counter offer or contract.
When an offer is made Presenting Your Offer
At the appropriate time, your MAGNITUDE REALTOR will present your offer to the Seller on your behalf. At MAGNITUDE REALTY, we feel that simply handing a copy of the Agreement of Sale to the Seller or Seller's Agent and letting them sort it out themselves is not enough. You, the Buyer, are a real person with real dreams of home ownership. Personalizing your offer helps the Seller to realize this, and they may be more inclined to give a less-than-full-price offer additional consideration, even in a multiple offer situation. In addition to the offer, the MAGNITUDE REALTOR will typically provide the Seller or Seller's Agent with a quick profile of who you are, where you work, and a brief list of features that attracted you to the property. They will also provide a letter of pre-approval from your mortgage lender that tells the Seller that you have taken the time to get your finances in order and are therefore a good risk for the offer being presented. And, in some cases, the MAGNITUDE REALTOR may provide a personal letter, written by you, which tells the Sellers in your own words why you chose their property for your new home.
Once presented, the Seller has several options. One option is to simply accept the offer as written. Another option is to counter your offer by changing the price or any terms. A third option is to reject your offer. And, a fourth option is to ask for additional time for consideration. One important factor to remember whenever an offer is made is that other offers from other buyers may be made at the same time, without you knowing of them. Buyers do not automatically have the right to know of the existence of other offers. It is the exclusive right of the Seller whether or not to share this information. Most buyers do not wish for this information to be transmitted to other agents and/or buyers. Therefore it is important to keep this in mind whenever making an offer to a Seller.
House Hunting FAQs
1. When I start visiting homes, what should I be looking for the first time through? The house you ultimately choose to call home will play a major role in your family's life. A home can be an excellent investment, of course, but more importantly, it should fit the way you really live, with spaces and features that appeal to everyone in the family.
At each home, pay close attention to these important considerations. 1. Is there enough room for you now, and in the near future? 2. Is the home's floor plan right for your family? 3. Is there enough storage space? Will you have to replace the appliances, carpet, or mechanicals? 4. Is the yard the size that you want? 5. Are there enough bathrooms? 6. Will your present furniture work in this home? 2. Is an older home as good a value as a new home?
It's a matter of personal preference. Both new and older homes offer distinct advantages, depending upon your unique taste and lifestyle. New homes generally have more space in the rooms where today's families do their living, like a family room or activity area. They're usually easier to maintain, too. However, many homes built years ago offer more total space for the money, as well as larger yards. Taxes on some older homes may also be lower. Some people are charmed by the elegance of an older home but shy away because they're concerned about potential maintenance costs. Consider a home warranty to get the peace of mind you deserve. A good Home Warranty plan protects you against unexpected repairs on many home systems and appliances for a full year or more after you move in. 3. Do I need to bring anything along when I'm looking at homes?
Bring your own notebook and pen for note taking and a flashlight for seeing enclosed areas. Be prepared to snoop around a little. After all, you want to know as much as possible about the home you buy. Sellers understand that because their home is on the market, it will be looked over pretty thoroughly. If you need to go back to a home for another look, we will be happy to schedule another viewing appointment. Be sure to ask any questions you have about the home, even if you feel you're being nosey. You have a right to know.
When you find a home you may be interested in buying, make sure we ask the owner the following questions:
1. How much money do you pay for monthly utilities? 2. What features have you enjoyed most about living in this home? 3. Are there defects or problem areas that need to be fixed? 4. How old is the furnace and central air conditioning system? 5. How old is the roof? Have you experienced any leaking? 4. What should I ask my Broker about each home that I look at?
As a rule of thumb, ask any questions you have about specific rooms, features or functions. Pay particular attention to areas that you feel could become problem areas-additions, defects, areas that have been repaired. And above all, if you don't feel your question has been answered, ask until you do understand and are satisfied. In most cases, we will be able to provide you with detailed information.
5. What should I tell you about the homes I look at?
Tell us what you liked and didn't like about each home you saw. It is important for us to really get a feel for what you're looking for in a home in order to find your dream home. Don't be shy about talking about a home's shortcomings. Was the home perfect except for the carpeting? Let us know that, too!
6. How many homes should I look at before I buy?
There is no set number of homes you should look at before you decide to make an offer on one. That's why providing us with as many details as possible up front is so helpful. The perfect home may be waiting for you on your first visit. Even if it isn't, the house-hunting process will help you get a feeling for the homes in the community and narrow your choices to a few homes that are worth a second look. You'll be one house closer to your home!If you're looking in more than one community, try to make the most of each house-hunting trip. Stop by the local Chamber of Commerce to pick up promotional literature about the community. Or ask us for welcome kits, maps, and information about schools, churches, and recreational facilities. Also, be sure to take along a camera and snap some pictures of all the homes you like. That'll make it easier to remember.
7. What should I think about when I'm deciding which community I want to live in?
Good city services, nice parks and playground facilities, convenient shopping and transpor tation, a track record of sound development and good planning-these are just a few considerations that are important to many people when they choose a community in which to live. As for individual neighborhoods within a city, there is no better source of information than MAGNITUDE REALTORS. We know the people and the communities we serve, and chances are we can help you find a neighborhood that really fits your family's needs. 8. Where can I get information about local schools?
We are your best source. We know where the local schools are, and can provide you with valuable information about school districts, including test scores, extracurricular activities, bus service and more. If you're relocating, we may even be able to put you in touch with teachers and principals when you visit the area.
9. How can I find out what homes are selling for in a given neighborhood?
Home sales are a matter of public record, so ask us! If you're interested in a particular home, we may be able to provide you with a list of comparables - sale prices of homes in your area that are roughly the same size and age as the home you're considering. Although there will certainly be some differences between the homes - the house next door may have an extra bedroom, or the one down the block may be older than the one you're looking at - it's a good way to evaluate the seller's asking price.
Mortgage FAQs
1. What is a mortgage, and what are the benefits of different kinds of mortgages?
Simply put, a mortgage is a loan that a home buyer obtains directly from a lender to purchase real estate. The mortgage is a lien on the property that secures a promissory note (promise to repay the debt) that states the terms of the loan, including the interest rate, and the number of payments.
The most popular mortgages available to home buyers today can be divided into two general categories: those which offer fixed interest rates and monthly payments, and those where one or both of those factors are adjustable. Fixed rate/fixed payment loans are more traditional, and remain the most popular home financing method, currently accounting for about two-thirds of all residential mortgages. Their advantages are well-known: You always know what your monthly principal and interest payment will be, so your basic housing cost will remain unaffected by interest rate changes until the mortgage is paid off. Mortgages that entail flexible rates and/or payments have grown in popularity during periods of high interest rates and/or rapidly rising home prices. Many, including the popular ARMs (Adjustable Rate Mortgages), offer lower-than-market initial interest rates that allow buyers a measure of affordability unavailable in fixed-rate loans. The tradeoff may be higher interest rates and higher monthly payments later on. As yourself the question: Is my income expected to go up in the future, or not? 2. What are the different types of lenders, and how do I choose the right one for me?
Before someone lends you the money to purchase your home, they'll want to know a lot about you. And you're entitled to know as much as you can about them, too.
It's important because getting a mortgage is not just a one-time signing of documents, a handshake and a check. You will be depending on your lender to fund the loan as promised, on time, and over the life of the loan, to keep good payment records, pay your taxes and insurance (if included in your monthly payment) and many other continuing services. Look for a lender that has the authority to approve and process your loan locally. It's easier to obtain information on the status of your loan and discuss conditions directly with the person who will approve your loan, rather than some far away loan committee. It's important that your lender know home values and conditions in your local area. And while biggest doesn't always mean best, financial stability, reputation, qualifying procedures, and unique programs benefit are what they offer home buyers. 3. Are there any mortgages especially designed for first-time home buyers?
Today, first-time home buyers enjoy a number of mortgage options that make purchasing a home more affordable by minimizing down payments and keeping monthly payments as low as possible during the early years of the loan.
Most ARMs feature an interest rate that is often below market for the first year, and may only rise gradually after that. VA and FHA-insured loans call for extremely low down payment (0-5% of the purchase price), and often offer a below market interest rate. Similarly favorable terms can also be arranged with the help of conventional loan PMI (Private Mortgage Insurance) or FHA loan MIP (Mortgage Insurance Premium). Finally, first-timers who can find a cooperative seller or third-party investor can look into such non-traditional financing methods as a lease/buy arrangement. 4. Can I get an FHA or VA mortgage?
Just about anyone can apply for an FHA-insured mortgage through banks and other lending institutions. They are particularly well-suited for buyers of low to moderate income; and have low down payment requirements (as low as 3% of the purchase price).
Similarly, VA-guaranteed loans often require no down payment. These loans are reserved for either active military personnel or veterans, or spouses of veterans who died of service-related injuries. If there is a downside to these loans, it's the qualifying process. Though you apply for government-insured financing through a lending institution, the Federal Housing Administration or the Department of Veterans Affairs must insure or guarantee the loan and may require specific documentation or procedures not necessarily required for conventional financing. That may take more time than is generally required for conventional mortgage approval. Additionally, FHA-required insurance (MIP) must be added to your payment. Make sure the lender you select has approved authority by each of these agencies to ensure a quicker loan process. 5. How much of a down payment will I need to buy a home?
A down payment of 20 percent has been the benchmark for conventional financing, but today, many options are available, some requiring as little as 3 percent down. For buyers who qualify for conventional financing but can't handle the high down payment requirements, lenders offer this financing with PMI, or Private Mortgage Insurance. Designed to protect the lender against default by the borrower, PMI allows you to obtain traditional financing with a down payment significantly lower than the standard 20 percent. By using PMI, you may be able to get a fixed rate or adjustable rate mortgage by putting as little as 5 percent down.
As with an FHA-insured loan, you must pay premiums for PMI coverage, the amount of which are determined by the lender. Moreover, PMI premiums are often lower than FHA insurance, and may be paid as part of your monthly mortgage payment, in annual installments, or in a lump sum at the time you obtain the loan. Your mortgage expert can help you determine which down payment option is right for you and your budget. 6. How does a lender determine the maximum mortgage I can afford?
The three primary areas lenders examine in determining the size of mortgage you can handle include your monthly income, non-housing expenses, and cash available for down payment, moving expenses and closing costs.
7. What are the steps involved in the loan process?
The information your lender needs is not much different than what is needed when you apply for a major credit card: names and addresses of your employer and bank account numbers and balances. The lender will also need other financial information such as installment payments, auto loans, charge cards, and department store accounts. The location and description of the property also are required. Your lender will verify this information with your present and past employers, order a routine mortgage credit report on your current and past accounts, and order a professional appraisal of the property you're wanting to purchase.
8. What is APR, and how is it calculated?
The Annual Percentage Rate is a calculated rate of interest for a loan over its projected life. This rate includes the interest, all points (which are considered prepaid interest), mortgage insurance, and other charges associated with making the loan that the lender collects from the borrower.
The APR is calculated by a standard formula that all lenders use. This enables the borrower to comparison shop between lenders and/or loan products. 9. How can I find out what my property tax bill will be?
Usually, the total amount of the previous year's property taxes is included on the listing information sheet for the home you're interested in. Remember, tax rates change from year to year, so the previous year's bill should be considered simply as a ballpark figure of what you would pay. For a more precise projection, call the local auditor's office for assistance, or simply ask us.
10. What is the difference between pre-qualifying and pre-approval?
Pre-qualifying for a mortgage up to a certain amount is a verbal exchange in which the lender tells you in advance approximately how much money the buyer is able to borrow, based upon the information you provide the lender on your debt and income. Pre-approval goes a step further than pre-qualifying. It is an actual commitment to lend, provided that, when the borrower is ready to buy, he or she still meets all the qualifying conditions that were met at the time of conditional approval. We strongly recommend it to give you the best negotiating position!
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