Buyer’s Choice Realty blog

During strong Seller’s Markets some homebuyers had difficulty getting offers with contingencies accepted. Now that the market has turned around buyers are doing much better with typical contingencies including financing, inspections, repairs, replacements and even the sale of the buyer’s property prior to closing on the home they want to buy.

When properties are well priced, it can be more difficult to get the contingencies that a Buyer’s Market usually allows. Competing bids can push buyers into making crazy decisions about Home Inspections. Don’t give it up, even if the property is sold “as is”.

Regardless of the particular market, most real estate experts would advise against giving up the home inspection contingency. It’s just too risky to go without.

The other mistake some buyer make is to put too many contingencies into an offer. Talk with your buyer’s agent to get a reasonable approach to contingencies.

Ronn Huth - 800-25 BUYER

Before you set out on the adventure of buying real estate, it’s important to understand your legal rights as a home buyer so you aren’t seduced by the misguided beliefs that surround the true guidelines of the business.

It’s up to you to learn about the different aspects of buying real estate. Things like the purchase contract, mortgage rates and above all what’s possible to anticipate so far as the soundness of the home you’re considering, as well as any monetary dealings associated with it.

It’s your responsibility to complete your preparation and realize your complete protection under the law. Your real estate buyer’s agent or attorney can help but this is an area where due diligence on your part is nicely rewarded.

Thanks to anti-discriminatory laws and regulations such as the Fair Housing Act, no property owner may refuse to accept an offer coming from any buyer based on race, creed, or color. Although some sellers do believe is that this is any sellers’ legal right. Any such behavior is often legally interpreted as discrimination regardless of what the seller may believe. Don’t let any person inform you they’ll not allow your offer to be presented. Further, any licensed real estate agent is held to an even higher standard.

It does not mean, of course, that your offer will be accepted, or even that the seller will make a counter-offer. But rejection had better not be based on discrimination.

In situations or locations where multiple offers on the same real estate for sale are not that unusual, it should be comforting for you to know that at least your offer will be presented to the seller.

Massachusetts has some peculiar laws, rules, and regulations that buyers need to know and understand. Here at Buyer’s Choice Realty we can walk you through some of theose concerns and help you find the right answers.

Ronn Huth 800 25 BUYER

Mortgage closing costs are on the rise across the nation and are up 8.8% over the last twelve months. Origination and title fees on a $200,000 home loan average $4,070 nationally according to Bankrate Inc.’s 2011 Closing Costs Survey.

Banks are requiring extra employment verification and the like to keep loans in shape for Fannie Mae and Freddie Mac, and although these regulations “have been in place for a couple of years already, the mortgage industry takes them more seriously now. New forms and regulations that are still in discussion are influencing lenders already.”

Bankrate said, “On average, lenders charge about $1,614 in origination fees this year, up 10.3 percent from last year. Origination fees include lender charges for services, such as underwriting and processing.”

“Interest rates get a lot of attention, and rightfully so, but it’s also important for consumers to compare lender fees when shopping for a loan,” said Greg McBride, CFA, senior financial analyst for Bankrate Inc.

Is lending passing on a cost that should have been built in to start with? What do you think of the rising closing costs?

While you’re trying to decide when the best time to buy real estate might be, line up a team who can help you accomplish your goal when you decide to move forward. You can do this by researching online, attending open houses in the area and asking a real estate agent to keep you on top of market fluctuations.

If you’re a home buyer, make sure you have job security, a relatively healthy economy in your local area and a plan to stay put for at least 10 years.

Good economic news will help fence-sitters make the decision to get serious about moving. Bad news of any sort can cause the market to stall.

Find a good buyer’s agent to work with who understands your needs, and wait to buy until the time is right for you. It could take you a year or so to make the final decision. Some agents don’t have the patience to stick it out. Ask them that question.

One of the most difficult aspects of the current home buying process is financing the transaction. Find a mortgage broker who is a real professional, has been in the business for years and who understands what current underwriters will require from you to process your loan.

Assemble all the financial documents you’ll need for loan approval even before you start looking. Ask your buyer’s agent or broker to have your loan package previewed by an underwriter so you know beforehand if there are any problems.

Take care of any possible closing issues in advance so they don’t cause last-minute delays in closing. Your buyer’s agent can help you with all of this.

In Massachusetts any real estate company that lists property and represents sellers and also represents buyers in the purchase of one of the company’s listings is in Dual Agency. That means the brokerage firm has a conflict of interest. In our state it could be called either Dual Agency or Designated Agency depending on the office policy of the real estate company. Dual Agency recognizes the conflict and limits the level of service to both clients.

In a Designated Agency company both agents are allowed to represent their respective seller and buyer clients without being a Dual Agent. However, they are still in a dual agency transaction and their broker is considered a Dual Agent. The real estate company still profits more when a higher purchase price is negotiated. This also benefits the seller. But where does that leave the buyer?

Some Buyer Agents in Designated Agency offices think of themselves as Exclusive Buyer Agents. But by definition an Exclusive Buyer Agents works for an office that does not take listings of any kind and represents only buyers. The National Association of REALTORS defines Exclusive Buyer Agency as “the practice of representing only buyers, and never sellers in a transaction. The company never lists a seller’s property and thus never has a seller as a client.”

Any company that represents both sellers and buyers runs the risk of dual agency. Designated Agency is the primary choice for real estate companies in Massachusetts. Any Buyer’s Agent representing a purchaser in a buying a company listing is in Dual Agency.

Most true Exclusive Buyer’s Agents belong to NAEBA (National Association of Exclusive Buyer Agents). What kind of office does your Buyer’s Agent work in? Are they members of NAEBA?

Ronn Huth 800 25-BUYER

Something’s Fishy Here, Let’s Get More Information - Listing sheets don’t always have all the information a buyer needs. Sometimes the listing information is incorrect. It may be as simple as the square footage looking and feeling very different from what the listing sheet says it is. What’s right, the look and feel or what the listing sheet claims?

It could be the seller tells you the basement is dry but you see this white effervescent line near the bottom of the basement wall. Perhaps the owners are claiming their home is a four bedroom but two of the “bedrooms” don’t have any closets. How many bedrooms does this house really have? If it’s a private septic, how many bedrooms is the septic designed to handle?

Maybe the owner of a home you are interested in is hospitalized or in a nursing home and a relative is claiming they have the right to sell the home, but do they? You’re looking at a two-unit building but there doesn’t seem to be any egress from the second floor unit.

You’re looking at a condo and you love it, but one of the other unit owners happens to mention something about the association facing a lawsuit. Can you get financing on this unit? What are other reasons that might indicate this is a complex to be avoided?

It’s winter time and you wonder what’s under all that snow. But you like the house and are told there are no problems and that tree with no leaves will come back in the spring, no problem. Will it, or is it a dead tree you will have to have cut down?

The neighborhood seems nice enough in the daytime, but what’s it like after dark? Are there things I need to know about crime in the neighborhood or if there are any sex offenders living nearby?

It’s obvious some deeper investigation is necessary. Do you have the time and experience to address these questions or issues on your own? What’s that about an easement on the property? What if I want to expand the house? Can I?

A Buyer’s Agent will go to the City or Town Hall to verify and substantiate. Checking out the neighborhood and giving you access to neighborhood information is part of a Buyer’s Agents job.

Getting to the Registry of Deeds, and other sources to verify specific details on the home is an important part of a Buyer’s Agent’s due diligence.

Have you run into some other issues that make you think something is just not right? How is your Buyer’s Agent helping you with these concerns?

Ronn Huth (800) 25-BUYER