buyers guide 3.0 - constant contactfiles.constantcontact.com/9ce0f7c4501/1395023e... · 2....

BuyersGuide FORALLYOURREALESTATENEEDS

LeonardRealEstateGroup 786.205.0187or305.726.8416 sean.e.pascale@gmail.com

WhoAreWe?

LEONARDREALESTATEGROUPLLCisarealestatefirmthatworksdiligentlyandconfidentially to ensure that our clients’ objectives are met and their desiredoutcomesareachieved.Withover30yearsofrealestateexperience,weprovidehigh-qualityprofessionalserviceandinsight.Wearededicatedtoevaluatingeachclient’suniqueneedsandfindingthemthatidealpropertydesignedjustforthem.Agreatdealbringspeopletogethersothatbothpartiesgetwhattheywant.Thatisourspecialty.WebelievethatMakingEducatedRealEstateDecisionsisimportantforresidentialand commercial buyers and sellers aswell as investors. To that end,we offerour Residential clients the most current educational resources and location-specificinformationthatcanhelpfamiliesavoidmakingmistakesandstartsavingmoney.Visitourwebsitewww.leonardrealestategroup.comandlookaround.For our Commercial clients, we offer over 25 years of practical EconomicDevelopmentexperienceinMiami-DadeCounty.Wehelpcommercialclientsandinvestorsunderstandthebigpictureandprovidevaluableprofessionalguidancethroughouruniquegovernmentalaffairsexperience.Regardless of what real estate services you need - buying, selling, residential,commercial,orinvestment-makeLEONARDREALESTATEGROUPLLCyourrealtorsofchoice.

BuyersGuideTableofContents

i) 10stepsthathelpinthehomebuyingprocess

ii) 3tipstobudgetandsaveforahome

iii) 3typesofhomeloans

iv) 8stepsinthefinancingprocess

v) 13necessaryfinancialdocuments

vi) 3financingcoststobuyingahome

vii) 10questionstoaskwhenchoosingarealestateagent

viii) Contact

STEPSTHATHELPINTHEHOMEBUYINGPROCESS

Buyingahouserequiresa lotoftimeandeffort,butthese10stepscanhelpmakethehomebuyingprocessmanageableandhelpyoumakethebestdecisionspossible.

1. StartYourResearchEarlyStartreadingWebsites,newspapers,andmagazinesthathaverealestatelistings.Makeanoteofparticularhomesinareasthatyouareinterestedinandseehowlongtheystayonthemarket.Also,noteanychangesinaskingprices.Thiswillgiveyouasenseofthehousingtrendsinspecificareas.AttachedisaReportaboutaMiamiSpringsproperty.Withinthereportyouwillfindallkindsofinformationaboutthelocalmarket,schools,businesses,educationlevel,andmore.Donothesitatetocontactus.Wewouldbehappytoputtogetherareportforyourproperty.

2. DetermineHowMuchHouseYouCanAffordLendersgenerallyrecommendthatpeoplelookforhomesthatcostnomorethanthreetofivetimestheirannualhouseholdincomeifthehomebuyersplantomakea20%downpaymentandhaveamoderateamountofotherdebt.

Butyoushouldmakethisdeterminationbasedonyourownfinancialsituation.UseamortgagecalculatororuseanAffordabilityCalculatortoseehowmuchhouseyoucanafford.

3.GetPrequalifiedandPreapprovedforcreditforYourMortgage

Beforeyoustartlookingforahome,youwillneedtoknowhowmuchyoucanactuallyspend.Thebestwaytodothatistogetprequalifiedforamortgage.Togetprequalified,youjustneedtoprovidesomefinancial informationtoyourmortgagebanker,suchasyour incomeandtheamountofsavingsandinvestmentsyouhave.Yourlenderwillreviewthisinformationandtellyouhowmuchwecanlendyou.Thiswilltellyouthepricerangeofthehomesyoushouldbelookingat. Later, you cangetpreapproved for credit,which involvesproviding your financial

documents(W-2statements,paycheckstubs,bankaccountstatements,etc.)soyourlendercanverifyyourfinancialstatusandcredit.

4.FindtheRightRealEstateAgent

Realestateagentsare importantpartnerswhenyou’rebuyingor sellingahome.Realestateagentscanprovideyouwithhelpfulinformationonhomesandneighborhoodsthatisn’teasilyaccessible to thepublic. Their knowledgeof thehomebuyingprocess,negotiating skills, andfamiliaritywiththeareayouwanttoliveincanbeextremelyvaluable.Andbestofall,itdoesn’tcostyouanythingtouseanagent–they’recompensatedfromthecommissionpaidbythesellerofthehouse.

5.ShopforYourHomeandMakeanOffer

Start touringhomes in your price range. Itmight behelpful to takenotes (using this helpfulchecklist)onallthehomesyouvisit.Youwillseealotofhouses!Itcanbehardtoremembereverythingaboutthem,soyoumightwanttotakepicturesorvideotohelpyouremembereachhome.

Makesuretocheckoutthelittledetailsofeachhouse.Forexample:

•Testtheplumbingbyrunningtheshowertoseehowstrongthewaterpressureisandhowlongittakestogethotwater

•Trytheelectricalsystembyturningswitchesonandoff

•Openandclosethewindowsanddoorstoseeiftheyworkproperly

It’salsoimportanttoevaluatetheneighborhoodandmakeanoteofthingssuchas:

•Aretheotherhomesontheblockwellmaintained?

•Howmuchtrafficdoesthestreetget?

•Isthereenoughstreetparkingforyourfamilyandvisitors?

•Isitconvenientlylocatednearplacesofinteresttoyou:schools,shoppingcenters,restaurants,parks,andpublictransportation?

Takeasmuchtimeasyouneedtofindtherighthome.Thenworkwithyourrealestateagenttonegotiateafairofferbasedonthevalueofcomparablehomesinthesameneighborhood.Onceyouandthesellerhavereachedagreementonaprice,thehousewillgointoescrow,whichistheperiodoftimeittakestocompletealloftheremainingstepsinthehomebuyingprocess.

6.GetaHomeInspection

Typically,purchaseoffersarecontingentonahomeinspectionofthepropertytocheckforsignsofstructuraldamageorthingsthatmayneedfixing.Yourrealestateagentusuallywillhelpyouarrangetohavethisinspectionconductedwithinafewdaysofyourofferbeingacceptedbytheseller.Thiscontingencyprotectsyoubygivingyouachancetorenegotiateyourofferorwithdrawitwithoutpenaltyiftheinspectionrevealssignificantmaterialdamage.

Both youand the sellerwill receivea reporton thehome inspector’s findings. You can thendecideifyouwanttoaskthesellertofixanythingonthepropertybeforeclosingthesale.Beforethesalecloses,youwillhaveawalk-throughofthehouse,whichgivesyouthechancetoconfirmthatanyagreed-uponrepairshavebeenmade.

7.WorkwithaMortgageBankertoSelectYourLoan

Lendershaveawiderangeofcompetitivelypricedloanprogramsanda reputation for exceptional customer service. Youwill havemanyquestionswhenyouarepurchasingahome,andhavingoneofourexperienced,responsivemortgagebankersassistyoucanmaketheprocessmucheasier.

Everyhomebuyerhastheirownprioritieswhenchoosingamortgage.Some are interested in keeping theirmonthly payments as low aspossible. Others are interested in making sure that their monthlypaymentsnever increase.Andstillotherspicka loanbasedontheknowledgetheywillbemovingagaininjustafewyears.

8.HavetheHomeAppraised

Lenderswillarrange foranappraiser toprovidean independentestimateof thevalueof thehouseyouarebuying.Theappraiserisamemberofathirdpartycompanyandisnotdirectlyassociatedwiththelender.Theappraisalwillletallthepartiesinvolvedknowthatyouarepayingafairpriceforthehome.

9.CoordinatethePaperwork

As you can imagine, there is a lotof paperwork involved inbuying ahouse. Your lenderwillarrangeforatitlecompanytohandleallofthepaperworkandmakesurethattheselleristherightfulownerofthehouseyouarebuying.

10.ClosetheSale

Atclosing,youwillsignallofthepaperworkrequiredtocompletethepurchase,includingyourloandocuments.Ittypicallytakesacoupleofdaysforyourloantobefundedafterthepaperworkisreturnedtothelender.Oncethecheckisdeliveredtotheseller,youarereadytomoveintoyournewhome!

TipstoBudgetandSavefor

Buyingahouseisexcitingandlife-changing.What'snotasmuchfunissavingforthedeposit.Butthemoremoneyyouputdownupfront,thelessyou'llhavetoborrow.

Therearemanyways to save forahome thatdon't requiremajor changes toyourlifestyle.Withagoodsavingsplanandsomediscipline,you'llsoonhavethedepositforyourhome.HereisagreatFinancialPlannerExcelspreadsheettohelpyouBudget.

1. WorkoutwhatyoucanaffordBe realistic. Youmay need to consider a smaller property, an older property, or aproperty inadifferentarea, justtogetyoustarted inthepropertymarket.Usethemortgagecalculatortoworkouthowmuchyoucanaffordtoborrow.

Mortgagecalculator

2. Waystobuildyourhomedepositfaster

Developaplantohelpyousavetowardsyourdeposit.UsetheTrackMyGOALSapptoseehowlongitwilltakeyoutosaveyourdepositandhowmuchyouneedtoregularlyputaside.

3. Cutbackontheextras

Theeasiestwaytoseewhereyoucancutbackisbydoingabudget.Writedownyouressentialcosts,suchasrent,billsandfood,andsubtractthisamountfromyourincome.Whatisleftoveriswhatyoucouldpotentiallysaveforyourdeposit.

Notsurewhereallyourmoneygoes?TryusingtheTrackMySPENDappforamonthtoseewhereyouspendyourcash.

Giveyourselfsomeleeway-ifyourbudgetistootight,itishardertoreachyourtarget.Sodon'tcutoutallyourfunexpenses.Agoodideaistosetsmallersavingsgoalsalongthewayandrewardyourselfwhenyouachievethem.

Readmoreonbuyingahome.

TypesofHomeLoans

1. ConventionalMortgage.Thisisthemostcommonlyusedtypeandusuallyhasthebest

rates.You’lltypicallyneedatleast10%foradownpaymentandgoodcredit.Canbefor15or30yearsor“interestonly”whereyouarenotpayinganyprincipalinyourpayment.“Interestonly” loanshaveabit lowerpaymentbut youdon’t payoff anyof the loanbalancewhenyoumakeyourregularpayment.

MortgageInsurance.Alright,thisisn’tamortgagetype,butyouneedtoknowaboutit!Ifyouputlessthan20%downonahome,mortgageinsuranceprotectsyourlenderincaseyouquitmakingpayments.ThecostvariesbytypeofloansoaskyourMortgageProfessionalaboutitwithevery loan you discuss. Mortgage insurance can now be a taxwrite-off depending on yourincomelevel,duetoarecentchangeinthetaxlaws.Also,onceyoubelieveyouhaveatleast20%equity,youshouldcontactyourlendertofindoutaboutgettingridofMortgageInsurance,alsoknownasPMI.

2. FHAMortgage.Thoughtofasthefirsttimehomeloanprogrambutactuallyavailabletoanyone.Thedownpaymentisonly3.5%andismoreforgivingoflowercreditscores.TheinterestratesarenotasattractiveasConventional,butqualifying for the loan isn’tastougheither.Hereisagreatin-depthlookatTheTop5thingsyoushouldknowaboutFHAhomeloansfromourfriendsatHomeownershipUniversity.FHAMortgagesarewhatmostpeopleconsidertobe“firsttimebuyerloans”.Notalllenderscanofferthem.

3. VALoan.Zerodownpaymentloan,butyoumustbeaveteran.

STEPS IN THE FINANCING PROCESS

Pre-Qualify

Interview

Housing Budget

Documents

Loan Application

Good Faith

Estimate

Loan Approval

Clear to Close

Closing

1. Pre-QualifyInterview

Priortothepropertyhuntingprocess,it’swisetomeetwithoneormoreLenderstobecomepre-Qualifiedforaloan.Thepre-qualifyprocessisnotanin-depthloanapplication.ItisadiscussionwiththeLendertodetermineyouroverallfamilyincomeanddebt.Theprocesscantakebetween30minutesandanhour.Theinterviewcanbeconductedoverthephoneorinperson.ThereisnofeeforthisservicefromtheLender.ThiswebsitehasagreatlistofPre-Qualificationquestions.

Westronglyrecommendthatyourefrainfromusingout-of-stateorInternetLenders.TheircostsareoftenexcessiveANDtherearemanyscamartistsoutthere.

At the end of the process you will receive a “Pre-Qualification” letter from the Lender,acknowledgingthatyouarequalifiedtopurchaseproperty“upto”agivenamount.Thisletterisneeded when you submit an offer for a property, to demonstrate that you are a capablepurchaser.

Onceyouhaveanacceptedagreementforthepurchaseofaproperty,youwillthencompleteamortgageapplicationwithyourlender.

2. HousingBudgetDuringtheloanpre-qualificationprocessyouwilldiscusswhatmonthlyHousingBudget you can comfortably afford. The budgetwill include an amount for themortgage itself, an amount for annual property and fire taxes and for propertyinsurance. Frequently, home buyers “qualify” for more house than they canactuallyaffordtopayfor.

It’s important that YOU tell the Lender the maximum loan payment (including taxes andinsurance)youarecomfortablewith-andthatwilldeterminehowmuchyoucanpayforyourproperty.

Tax Advantages: There are substantial tax savings when you own your own home. You candeductyourpropertytaxes, insuranceandupto100%oftheinterestyoupayaspartofyourmortgage(oftenthousandsofdollars).So,muchofthemoneyyoupayaspartofyourmortgagepayment,isdeductibleonyourtaxreturn.Thathelpsyouto“affordmorehouse”.

CAUTION–DoNotmakeANYpurchasethatwillabsorbyouravailablecash(someofwhichyoumayneedatclosing)OR,buyANYTHINGonpaymenttermsbeforeyoucloseonyourproperty.Itwillchangeyourcreditscoreandmaymakeyouineligibletopurchase.

3. DocumentsWhileyouareviewinghomestopurchase– this is the timetogetyour financingdocumentstogether–especiallyifsomeofyourfundsarecomingfromuntypicalsources–401K,loanfromaparent,retirementaccount,stocksandbonds.

YourLenderwillguideyou–but,attheminimum,youwillneedthefollowingdocumentswhenyouarereadytomakeyourloanapplication:

(a)TwoyearsofW2’s(b)Thirtydaysofpaystubs(c)Twomonthsofallbankstatements(d)Twelvemonthsofrentcheckpayments(e)Copiesofallapplicantsdriver’slicensesandsocialsecuritycards(f)Informationaboutretirementaccounts,401K,CD’s,socialsecurityordisabilityincome,childsupport,alimonyandmore.

Thisisalsotheperfecttimeto“cleanup”anynegativeissuesthatshowonyourcreditreport.YourLenderwillgiveyouacopyofthisreportandwillgiveyouguidanceonhowtogettheerrorscorrected.Theymayalsohelpyouthroughthisprocess.

4. LoanApplicationOnceyouhaveattainedanacceptedofferonyourpurchase,yourLenderwillwalkyouthroughtheLoanapplicationprocess.Therewillbeafeeforthisprocessoffrom$300.00to$400.00.Thisfeepaystoprocesstheloanapplication,anappraisalandotherrelatedcosts.

This is the point in time when you will need all of the documents that we have previouslydiscussed(andperhapsothers).Theloan“Originator”(thepersontakingyourloanapplication)willcompletealloftheproceduresneededtopresentyourapplicationtoan“Underwriter”(thepersonwhoworksfortheLenderandhasthefinalsayforapprovingyourloan).TheUnderwritersjobistodetermineifyourloanapplicationmeetsalloftheLenderandFederalagencyguidelinesandthatyourloanisariskworthtakingforthelender.

PleasedonothesitatetocontactMr.AldoSaavedraatASaavedra@firenzegroup.comHeisaverytrustworthymortgagebrokerwhocanhelpyouwiththisprocess.

5. GoodFaithEstimate

The“GoodFaithEstimate”isadocumentthatyouwillreceivewithindaysaftercompletingyourloanapplication.Thisdocumentwillprovideyouwithallofthedetailsaboutyourloan–thetermoftheloan,theinterestrate,the“points”(afeeyoupayforobtainingtheloan),the“ratelock”(howlongtheLenderwillguaranteethetermsofyourloanbeforeithastoberewritten).

6. LoanApproval

LoanapprovalbyyourUnderwriterislikelytocomewithasetof“conditions”.Theseconditionsareawholevarietyof“picky”butverynecessaryitemsthatyourloanOriginatormustobtainorsatisfybeforefinalapproval.

AtthispointyourOriginatorwillbeinclosecontactwithyouovertheseissues.Itisimportantthatyourespondtoanyofherrequestsquickly.

Oncetheseconditionsaresatisfiedyouwillreceivea“CleartoClose”fromtheUnderwriter.

7. CleartoClose

“CleartoClose”istheGOsignalforeveryonetogointooverdrive.Yourloan Originator will move loan information to the attorneys for thepreparationofalldocuments–yourTPNRealtorwillmoveanylastminutechanges toyourPurchase&Saleagreement to theattorneys - and theattorney’sparalegals(thosespecialpeoplewhodomostoftheattorneysworkandgetlittleofthecredit)gettoworkcreatingtheHUDstatementthateveryonereliesonattheclosingtosatisfyallregulations.

OncetheBuyerandSeller’sattorneyshaveagreedonallofthe“numbers”inthetransaction–adatewillbechosenfortheclosingandallpartieswillbeadvised.

8. Closing

“THEGATHERING”Thisisthedaywheneverythingcomestogether.Thebuyer–theseller–bothattorneys–theRealtors–sometimestheloanOriginatorwillbethereaswell.

OccasionallytheBuyerandSellerappearattheclosingatdifferenttimes.Normallythebuyer’sappearfirstbecausetheirprocesscantakefromanhourtotwohourstocomplete.Thesellerscanappearlaterbecausetheirprocessusuallytakesfrom30to45minutes.

It’sagreattime!We’veseentearsofjoyfrombuyersoftheirfirsthome–andtearsofnostalgiafromhomeownerswhoareleavingahomeof30or40years–wheretheirchildrengrewup-wherefamilymemoriesreside.

NecessaryFinancial

Documents

Exactlywhatdocumentsyou'llhave toprovidedependsonyourpersonal situation, includingyourcreditprofile,downpayment,workhistoryandthelenderyou'vechosen.Butifyouwantaloan,bepreparedtodocumentalltheinformationyouprovideforyourapplication.Herearethetop13:

1. W-2forms.Peoplewhohaveaconventional jobwillneedtoprovideW-2 forms fromtheiremployeroremployers,foroneortwoyears.

2. Paystubs.Expecttoprovideenoughpaystubstocoveramonthofemployment.Ifyou'repaidweekly,forexample,you'llneedthelastfour.

3. Bankstatements.Lenderswillwanttosee,ataminimum,yourlasttwomonthsofbankstatements.Keep inmindthat it's important toprovideall thepages,even if someofthemareblank.

4. Tax returns.Mostborrowerswill beasked for at least the latest year's tax return, allschedulesincluded.Ifyou'reself-employed,haveasidebusiness,ownrentalpropertyorhavealotofemployeebusinessexpenses,you'llprobablyneedatleasttwoyearsoftaxreturns,bothbusinessandpersonal,Flemingsays.

5. Identification.Adriver'slicenseprobablywillsuffice.Ifyoudon'thaveadriver'slicense,apassportorstate-issuedIDcardissuitable.

6. ProofoflegalU.S.residencyifyou'renotaU.S.citizen.Forpermanentresidents,thatmeansagreencard.PeoplewhoareintheU.S.onothertypesofvisasmaybeaskedtoprovideadditionaldocumentation.Lendersaren'tgoingtoofferaloantosomeonewhoisintheU.S.onlytemporarily,Flemingsays.

7. Proofofmilitaryservice.Ifyou'reaveteran,you'llneedyourDDForm214,CertificateofReleaseorDischargefromActiveDuty,ifyouwantaloanfromtheU.S.DepartmentofVeterans Affairs program. If your service was before 1950, the document may haveanothername.

8. K-1andbusinesstaxreturns.Ifyouownabusinessorareself-employed,youwillneedtodocumentalltheincomeyouclaiminyourloanapplication.Exactlywhatdocumentsyouneedwilldependuponyourbusinessstructure.Flemingrecentlyprepareda57-pagereport foraclientdocumentingthe incomehereceivedfrommultipleventures.Someself-employedborrowerswill be asked for a profit-and-loss statement for the currentyear.

9. Sources of funds. If your submitted bank statements include any large or unusualdeposits,you'llhavetoverifywhereyoureceivedthemoney."Lendersarerabidaboutthatrightnow,"Flemingsays."Youcan'tjustwritealetterofexplanationlikeyoucouldin theolddays." If yousold stockorotherassets, forexample, you'llhave toprovidecopiesofallthedocumentsrequiredtoverifythesaleandtheproceedsreceived.

10. Giftletter.Ifsomeonegaveyoumoneytohelpwithyourhomepurchase,you'llneedtodocumentit."Alotoffirst-timehomebuyersreceivegiftsfromfamilymemberstohelpthem,"Gutierrezsays.Thelenderwillwantagiftletterthatwillincludeinformationaboutthedonor'srelationshiptoyou,theamountofthegift,thedateandthepurpose.Thedonormaybeaskedtoprovethatheorshehastheresourcestomakethegift,probablybyprovidingbankstatements.Lendersmayalsohavegiftformsforthedonortosign.

11. Alimonyorchildsupportdocuments.Alendermaynotaskifyoureceivealimonyorchildsupport,butyouarewelcome tovolunteer that information if youwant touse thosefundstoqualifyfortheloan.Youmaybeaskedforyourdivorcesettlement,proofthatyourex ispayingregularlyandverificationthat thepaymentswillcontinue for twoorthreemoreyears.

12. Proofofreserves.Lenderswanttomakesureyoucanaffordtomakepaymentsonceyou'veclosed,andmostwillwanttoseeenoughcashtocoveratleastthreemonthsofpayments.Showingcashreservesandassetsisalsohelpfulifyouhaveaweakjobhistoryormediocrecredit,Flemingsays."Ifthere'sanyweaknessatallinthefile,showingmoreassetsisuseful,"hesays."Whenyoucloseescrow,wedon'twantyoutobebroke."

13. Cancelled rent checks. Buyers who don't own another home will be asked to provethey'vepaidtheirrentontime,especiallyiftheydon'thaveasignificantcredithistory.Thatcanusuallybedonewithaverificationformfilledoutbyalandlordor12monthsofcancelledrentchecks.

FinancingCoststoBuying

Ingeneral,thefeesassociatedwithahomepurchaseincludeclosingcosts,loandiscountpointsandprepaiditems.

1. ClosingCostsTheamountyouwillpayinclosingcostsvariesbylocationandtypicallycostsbetween2%and3%oftheloanamount.Closingcostsarenotcalculatedonapercentagebasis,but insteadarebasedonspecific line itemsrelatedtoyourloanapplicationandlenderfees.

Unlessyouhavenegotiatedtohavesomeoneelsepaythesecosts,theyareyourresponsibilitytopayatthesettlement.

Though we don’t believe Zillow is a great source for home shopping, they did compile anextensivelistofpossibleclosingcosts.Checkitoutherehttp://www.zillow.com/wikipages/List-of-Closing-Costs-and-Fees/

Someexamplesofclosingcostsinclude:

• Loanoriginationfee• Creditreportfee• Loanapplicationfee• Titleservicesfeeandlender’stitleinsurancepremium• Owner’stitleinsurancepremium

2. LoanDiscountPointsAdiscountpointisequalto1%ofyourloanamount.Youmayormaynothaveagreedtopaypointsforyourloaninordertolowertheinterestrate.Ifyouchosealoanwithdiscountpoints,thenyouwillpaythepointorpointsattheclosing.

3. PrepaiditemsMostlendersrequireanescrowaccounttobeestablishedwithyourloantocoveryourpropertytaxesandhomeownersinsurance.Eachofthosebillswillbeestimatedandthen,aspartofyourmonthlymortgage payment, you will pay a portion of those bills to your lender.When theinsuranceandtaxbillscomedueyourlenderpaysthemforyou.

Onsettlementday,lendersrequireyoutopayintoyourescrowaccountasumtocoverpartofyourpropertytaxesandhomeownersinsurance.Inaddition,youwillneedtopayforyourfirstyearofhomeownersinsuranceinfull.

Dependingonthedayofyourclosing,youwillalsoneedtomakeaproratedpaymentforinterestonyourmortgagefromtheclosingdateuntiltheendofthemonth.

The federalgovernmenthasrevisedtheHUD-1SettlementStatementmultiple timesandhasmadeaGoodFaithEstimatemandatory.Ifyouhaveanyquestionsorconcernsaboutanyfeesyouareexpectedtopayatyourclosing,youshouldconsultyourlender,yourtitlecompanyandyourREALTOR®foranexplanation.

**UsethisBuyingCalculatortohelpyoufigureouthowmuchyoumightneed**

QuestionstoaskwhenChoosingaRealEstateAgent

Someofagentsaresmart,efficient,focused,versatileandwillingtogotheextramile.Andsomeofthemaren’t.Findinganagentwhowillsellyourhomeusingarangeofmarketingtoolstogetyouthebestdealpossibleinareasonableamountoftime,allwhilechargingafairrate,takessomeeffort.Hereiswhatyoucanask:

1. Howmuch?Askpotentialagentshowmuchtheythinktheycansellyourhomefor.Iftwoagentssay$600,000andthethirdsays$700,000,thinkhard.It’slikelythehighbidisanexaggerationtoattractyourbusiness.Inthetradeit’sknownasbuyingalisting.Intheend,you’llbetheonewhopaysbecausethehighpricewillscareawaypotentialbuyersbeforeyouinevitablydroptheprice.

TheLeonardRealEstateGroupcreatesafullmarketanalysisreportwhichwillshowarangeofvalueforyourhome.Wewillsitdownwithyouandexplainourfindingssoyouare100%satisfiedthatitistherightprice.HereisanexampleofaCMAReportwehavedone.

2. Howwillyoumarketit?Runningafewclassifiedadsinthelocalpaper,listingitontheInternetandholdinganopenhouseshouldn’tbetheonlyanswers.Thepractitionershouldbeabletotalkaboutwhatkindsofpeoplearelikelybuyersandhowhewillreachouttothosespecificpeople.

3. Howhasyourbusinesschangedinthelastfiveyears?Ifshedoesn’ttalkaboutwebsitetoursandsmartphones,chancesarethisisnotahighlywiredagent.WhileLudditescanstillsellhouses,itisgettingharder.Andifthisisoneofthosepeoplewhodon’tevenusee-mail,you’relettingyourselfinforunnecessaryaggravation.Andyoumaycutyourselfofffromopportunities.

4. Tellmehowyourlasttwodealssurprisedyou?Everyagenthasasuccessstory,butthis

questionwillgiveyouamuchbetterfeelforwhatthispractitionerislikeasasalesperson.

5. What’s your specialty? If you’re selling a starter home in a community full ofyoungfamilies,hiringanagentwhospecializesinseniorsisprobablyabadidea.Itdoesn’tmeanthatifheonlysellscondosthathecan’tsellahouse,buthemaynotbegeareduptodothebestjob.6. Howmanypeopleareyousellinghomesforrightnowandwhatareyoudoingforthem?Itmaynotbeabadthingthatahigh-poweredagentisjuggling15homes,butdon’texperthertogiveyoupersonalservice,althoughherassistantshouldbeattentive.Ontheotherhand,bewaryofanagentwithnoothercustomersbecauseshemaylackexperienceandcontacts.

7. Whatdoyouexpectofme?Agoodsalespersonwillhaveexpectations.Hemaywantyou

to leave and take the dog when the house is shown, paint the garage, move somefurniturearoundandscrubthetileinthebathroom.Itshowsthathecanthinklikeabuyerandthat'sagoodthing.

8. WhatadvicewouldyouhaveformeifIgetanofferfromabuyerwhowantstousean

FHAloan?Itwasn’tverylongagowhentherightanswermightberuntheotherway,butthesedaysgovernment-guaranteedfinancingfromtheFederalHousingAdministration,the Department of Veterans Affairs and state and locally managed loan assistanceprogramscanbekeytosellingaproperty.Realestateagentsshouldn’tbepushingbuyerstowardtheirfavoritelenders,buttheyshouldbeabletohelpthemandyouwadethroughcomplexfinancingissues.

9. What’s your fee? Forty-six percent of sellers Consumer Reports surveyed this year

attemptedtonegotiatealowercommissionrate.About71percentsucceededandthosepeoplewerejustassatisfiedwiththeperformanceoftheirrealestateagentsasthosewhopaidthestandard6percentormore.Inshort,ifyoudon’task,youdon’tget.

10. CanItalktooneofyourpreviousclients?Youneverknow.Someclientsmaytellyouto

steerclear.Wearehappytoprovideyouwithreferencessoyoucanhearaboutsomeofourpastwork.

Contactusformoreinformation!

Website:www.leonardrealestategroup.com

SocialMedia

SeanEganPascaleSalesAgent786-205-0187

sean.e.pascale@gmail.com

Carlos(Charlie)LeonardPresidentBroker305-726-8416

charlie@leonardrealestategroup.com

buyers guide 3.0 - constant contactfiles.constantcontact.com/9ce0f7c4501/1395023e... · 2....

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