Buying Real Estate

An Overview

John O’Connor Jason HighlandKeller Williams Realty Boston-Metro Keller Williams Boston-Metro617. 861.3642 tel. 617.861.3621 tel.John@BostonCity Homes.com Jason@BostonCityHomes.com

Why This Meeting?

Education Understanding your rights. Smarter clients are better for everyone! Prepared buyers can act faster if needed.

Meeting state and ethical requirements. Providing an overview of the buying process

Knowing what to expect so there are fewer surprises along the way.

Explaining how I work.

You Have Four Options

Do nothing. Decide to work on your own. Decide I’m not the one for you. Decide to work with me.

Buying Your First Home Step By Step

Step 1 - Start with the Lender

Ensure that you can get a mortgage. Understand how much you can spend. Get pre-approved before you look:

What is pre-approval? How does it work? How is it different from pre-qualification? Why does it make you a stronger buyer.

I can help refer you to excellent mortgage brokers if you don’t already have one.

Step 2 – Where I Come In

Consultant vs. salesperson Help you determine what’s important to you Act as your guide in your new home search

Set up showings Watch the market, preview properties Provide you with the information that you need

Lead you through the negotiating process Coordinate smooth interaction between all parties (buyer,

seller, real estate agents, mortgage brokers, attorneys) Answer questions and guides you through the closing

process and beyond Stay with you beyond the closing

Step Three – The Search Begins

MLS & Link search tools

Daily LINK & MLS updates

Additional pix, v-tours andinfo (MLS listings)

Broker previews

Peer networking

LINK Database

MLS Database

Client Tools Agent Tools

Boston Homes

E-mail updates

Realtor.com

Step Four – Viewing Property

Scheduled Appointments: Typically arranged by me, along with the listing agent. Normally requires 24 hours notice.

Sunday Open Houses: I can accompany you, or You can go on your own.

Let the agent know you’re working with me. If you must sign in, sign in with my name.

Do not contact other agents directly! If you see something that interests you, call me and I

will get the information on your behalf.

Step Five – The Purchase Process Offer To Purchase

Outlines basic terms and conditions of the sale Price, dates, conditions, financing $1,000 check

Is a serious legal commitment May take several rounds to come to agreement

Inspection Chance to understand condition of property Renegotiate some terms based on report if necessary

Purchase & Sale Standard agreement outlining all the specific legal requirements

between buyer & seller Typically need 5% to 10% down at P&S

Mortgage Commitment Last date by which you can exit the deal for failure to secure financing

Closing Signed, sealed, and delivered!

Cost to Think About

Purchase Costs $1,000 at Offer 5 – 10% at Purchase & Sale Any additional down payment at closing

Additional Fees Lawyers fee for Purchase & Sale Bank fees for Mortgage Closing costs

Lawyer fees for handling the closing Title insurance Miscellaneous fees Tax escrows

These can vary greatly

Big Picture Timeline

GetReady

MortgagePre-Approval

Search OfferNegotiation Closing

Inspection

Date

5-7 Days

P&S

Date

~10 Days

Mortgage

Commit.

Date

~ 30 Days

Closing

Date

~ 60 Days

BR!

Work with a Buyer’s Agent

Buyer’s Agent: Works for the you. Puts the your interests first. Usually paid by the seller. Consults with you, offering you:

Opinion, strategy, insight Legal and ethical responsibility to treat both parties fairly.

Baseline Services

Provide ready access to inventory via LINK & MLS Provide basic data on values and taxes. Provide basic neighborhood info. Provide overview of the whole home buying process. Make referrals to lenders. Show properties and describe basic attributes and amenities. Explain & review standard forms. Submit and negotiate offers. Disclose material & known facts about the property. Offer property without regard to race, creed, sex, religion,

national origin, familial status and sexual orientation. Monitor deadlines subject to final review and enforcement by

buyer’s attorney.

Consultative Services

Enter into an agreement with the you representing your interests.

Provide insight and opinions on merits and/or drawbacks on individual properties including resale potential.

Provide analysis and guidance as to value of any property you may consider purchasing.

Provide guidance and advice in drafting offers. Consult with you regarding strategy & counter offers. Provide referrals and recommendations for home inspectors

and attorneys. Keep all information confidential including: motivation for

purchase and highest amount you may be willing to pay.

Massachusetts: A Special Case Dual Disclosure

What happens when a Buyer Client wants to buy a property listed by his/her Agent?

Because the agent is likely to be privy to information on both the Seller’s and Buyer’s side… Agent can not advocate for either side. Agent acts as facilitator to bring together both parties. Agent has a legal and ethical responsibility to treat

both parties fairly. Agent must disclose this situation to both parties and

both buyer and seller must agree to dual agency. This also happens when a Buyer’s Agent client wants

to buy a property listed by that Agent’s office

Now Let’s Talk About Me…

Buying a home is serious business and I take your business very seriously. But we will have fun I promise!

My commitment to my clients: Keep the # of clients low in order to provide outstanding service

Referrals Focus my efforts on my clients, not on finding new ones. The transaction is important, but our overall relationship is critical. I want to earn your referrals. I will not vanish after the sale.

Consultative approach. Information, not pressure.

Our Agreement . . . If we decide to work together we will memorialize our agreement in writing.

Forms Forms Forms! Agency Disclosure

What the State wants you to know Buyer Agency Agreement Consent to Dual Agency

So I can show you our office listings Inspection Fact Sheet

What you need to know about home inspections

Lead Paint Disclosure State mandated lead paint form

After Closing

Ongoing relationship! Use me as a resource. I will continue to stay in touch with you as a

client (and if in the city, as a neighbor). Referrals

If you are happy with me, then let me help people you know as I helped you.

Best way to let me know I did a great job is to refer people to me.

Contact Information

John O’Connor 617.861.3642 tel. 617.542.0012 fax. John@BostonCityHomes.com

Jason Highland 617.861.3621 617.542.0012 Jason@BostonCityHomes.com