Home Buyer Handbook 2018
Accel Realty Partners Home Buyer Handbook (Version 2018)
Accel Realty Partners Home Buyer Handbook (Version 2018)
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GUIDE TO BUYING A HOME<br />
<strong>2018</strong>
“But….I don’t want a REALTOR”<br />
LET’S TALK ABOUT THAT<br />
I became an agent because I knew the business could be done<br />
much better than most Agents do it. When I bought my first home<br />
I was less than impressed with the overall experience. I vowed to<br />
become the agent that I would want to have if buying a home. I<br />
sincerely look forward to making your time buying a home as<br />
seamless as possible and to keep you educated and informed<br />
along the way. You will benefit from my experience.<br />
LET’S GET STARTED!
Buying a home is one of the biggest investments and financial<br />
decisions you can make. While it is a major commitment and<br />
responsibility, it is also a very exciting time in your life. I’m proud<br />
to play a part in it all and am excited about having the privilege of<br />
handing you the keys to your new home!<br />
Let’s not forget that buying a home is a complicated process. I<br />
will work hard to make sure everything is as rewarding as possible.<br />
This guide was designed to inform you about our company and<br />
every step leading up the purchase.
WE ARE IDAHO REAL ESTATE<br />
My company, Accel Realty Partners, is comprised of a select group<br />
of experienced and knowledgeable real estate Agents and Staff that<br />
provide our Clients with the highest level of personal service and<br />
expert advice. Whether you are buying, selling, or investing we are<br />
available to provide expertise in all areas of your real estate<br />
transaction.<br />
We pride ourselves in a culture that resonates with each <strong>Buyer</strong> or<br />
Seller to feel that they are working with the highest standards.<br />
Below are some statutory responsibilities that as your Agent we will<br />
always abide by:<br />
OBEDIENCE<br />
LOYALTY<br />
FULL DISCLOSURE<br />
CONFIDENTIAL<br />
ACCOUNTABLE<br />
REASONABLE CARE<br />
Accel Realty Partners <strong>2018</strong> All Rights Reserved
WE BELIEVE<br />
We believe every client deserves a distinctive real estate<br />
experience based on a foundation of trust.<br />
As your trusted advisors it is our responsibility to negotiate the best<br />
offer when buying a home. We understand that purchasing a<br />
property brings with it a multitude of emotions. This guide is a great<br />
tool in understanding the entire process from the buyer consultation<br />
to the closing table, in order to ensure your transaction is as<br />
seamless as possible.<br />
We pride ourselves on being a collection of talented and<br />
experienced professionals who have a passion for real estate and<br />
will represent you with the highest quality.<br />
Photo Courtesy of Alturas <strong>Home</strong>s
EXPERTISE & EXPERIENCE<br />
Our national reach, yet local knowledge provide a great platform<br />
for your home buying experience. Treasure Valley neighborhoods<br />
offer a vibrant lifestyle second to none and Idaho is one of the<br />
best places in the world to live.<br />
Trusted expertise is a core value at Accel Realty Partners. We<br />
know there are many real estate companies to choose from and<br />
we take your trust in us seriously. Buying a home is one of the<br />
most important decision you can make in a lifetime. Our<br />
experience and high-integrity Agents are there to guide you<br />
through the process every step of the way.<br />
IdahoRealEstateSearch.com
WHICH HOME IS THE RIGHT ONE?<br />
I’ve made a commitment to help you find a home that suits your wants and needs, so now<br />
it’s time for you to articulate exactly what those wants and needs are. By sitting down and<br />
considering the kinds of things you’re really looking for, you can save a lot of time and<br />
frustration by avoiding houses that aren’t for you.<br />
STEP 1<br />
WHAT ARE YOU LOOKING FOR?<br />
HOME TYPE<br />
Single Family<br />
Duplex<br />
Condominium<br />
Townhome<br />
Mobile <strong>Home</strong><br />
INTERIOR FEATURES<br />
Minimum sf:<br />
Maximum sf:<br />
Carpeted Floors<br />
Hardwood Floors<br />
Fireplace<br />
LOT FEATURES<br />
Smallest yard size:<br />
Largest yard size:<br />
Fenced Yard<br />
Garage<br />
Carport<br />
sf /acre<br />
sf /acre<br />
COMMUNITY FEATURES<br />
Pool/Clubhouse<br />
HOA<br />
Park/School<br />
Other:<br />
STEP 2<br />
PRIORITIZE<br />
NOW THAT YOU’VE DETAILED your ideal home it’s time to put your priorities in order. What is the<br />
most important thing for you and what areas can you compromise? Chances are that the perfect home<br />
for you won’t be exactly what you put down on paper.<br />
Rank these five areas of your home’s features/benefts from 1-5, 1being the most important, 5 being<br />
the least important: price, location, size, amenities & design, others/special.<br />
Price: Location: Size: Amenities & Design: Other:
FINANCIAL REASONS TO BUY A HOME<br />
A recent study revealed five financial reasons why people should<br />
consider buying a home:<br />
1. Housing is typically the one leveraged investment available<br />
2. You’re paying for housing whether you own or rent<br />
3. Owning a home is a form of “forced savings”<br />
4. There are substantial tax benefits to owning<br />
5. Owning a home is a hedge against inflation<br />
In many price points and parts of the Boise area the available<br />
inventory is low. When you find a listing online that you’re<br />
interested in, please send it to my email, by text, or give me a call.<br />
Not only will I arrange a showing time for us to view the property,<br />
same-day showings are the expectation with all my Clients.
LET THE SEARCH BEGIN<br />
We will be with you every step of the process as your<br />
advocate, fiduciary, and friend. We will provide accurate<br />
information so that you can make informed decisions. This<br />
is more than real estate, it’s about your life and dreams.
FREQUENTLY ASKED QUESTIONS<br />
WHERE DOES MY EARNEST MONEY GO?<br />
When you submit an offer on a property, you submit your "good<br />
faith" funds to the seller along with the offer. This check is<br />
deposited into a trust fund account at the title company who will<br />
be handling the transaction. The earnest money funds are held<br />
until closing day, and are applied to your loan and closing costs.<br />
WHY WOULD I OFFER MORE THAN LIST PRICE?<br />
The truth is, every real estate market is different. In our greater<br />
Boise area, we are experiencing a shortage of available homes in<br />
some areas, meaning there is much greater competition among<br />
buyers who are all vying for the same properties. In our market, if<br />
you come in too low with your offer, chances are that there may<br />
be other buyers who are also going to be submitting an offer. In<br />
this case, a "multiple offer” scenario is born, and the seller is<br />
BASIC TIMELINE OF EVENTS<br />
under no obligation to respond to your offer if there are a handful<br />
of other offers from which to choose.
As your Agent, I will prepare and present the offer that you wish to<br />
present. Be prepared that if we are in a highly competitive area or<br />
in a multiple offer situation, our offer might be ignored or passed<br />
over unless it is high enough or good enough to get the seller's<br />
attention and beat out the others. No one wants you to pay<br />
above asking price, but there are scenarios where offering list<br />
price or above is the only way to beat the competition.<br />
BASIC TIMELINE OF EVENTS<br />
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
7<br />
8<br />
Search for the property.<br />
When you’ve found “the one” we submit an offer and begin negotiations.<br />
When the offer is accepted, you are “Pending” and we turn in all paperwork to the<br />
lenders, title companies, real estate brokerages, etc.<br />
You turn in your Earnest Money to the title company and we schedule the home<br />
inspection.<br />
We negotiate any repairs with the seller based on the inspection and the lender<br />
orders the appraisal.<br />
A lot of “behind the scenes” work is conducted to ensure all documents are ready<br />
to transfer ownership of the property from the seller to you.<br />
We do a final walk through to inspect the property prior to closing.<br />
We close on your home.
ADVANTAGES OF A BUYERS AGENCY AGREEMENT<br />
Entering into a <strong>Buyer</strong>s Agency Agreement in Idaho has<br />
countless advantages. When you sign the agreement you are<br />
simply hiring a personal representative who, by Idaho law,<br />
must represent and respect your duty of care, confidentiality,<br />
and disclosure to the best of their ability. This personal<br />
representation is available at absolutely no cost to you. (The<br />
Seller's Agent is responsible for paying the <strong>Buyer</strong>’s Agent fee.)<br />
Working with us means you have a professional team devoted<br />
to protecting you. In today’s environment, one mistake in a real<br />
estate transaction can cost you thousands of dollars or worse<br />
the opportunity of not getting your dream home. It is another<br />
reason why a <strong>Buyer</strong>’s Agent Agreement is the best way to<br />
ensure that you are properly protected throughout the entire<br />
process.<br />
As your Agent, our job is to leverage all of the resources,<br />
knowledge, tools, and experience we have in order to find you<br />
the perfect home within the time period you tell us. We will<br />
treat your purchase as if it were our own, giving you peace of<br />
mind knowing that every date and detail is being handled with<br />
care. This eliminates confusion, stress, and anxiety.<br />
As a first-time home buyer, having a <strong>Buyer</strong>’s Agent is an<br />
essential part of making sure that your experience is<br />
educational, enjoyable, hassle-free, and, most important,<br />
productive.
LOAN PRE-APPROVAL<br />
Few people can buy a home for cash. According to the most<br />
recent statistics, nine out of ten <strong>Buyer</strong>s finance their home<br />
purchase. Getting a pre-approval is important because it allows<br />
you to know which mortgage (lowest cost and best terms) is right<br />
for you. With certainty you will know the mortgage terms are in<br />
your best interest and exactly how much home you can afford to<br />
buy.<br />
.<br />
Your lender will provide a pre-approval letter that shows your<br />
buying power. You are free to visit as many lenders as you like<br />
but keep in mind that each one carries with it a new credit inquiry,<br />
which may show up on credit reports. Although the pre-approval<br />
is not a final loan commitment, it is provided to the Sellers when<br />
offering on a home. It demonstrates your financial strength and<br />
shows your ability to go through with a purchase. This information<br />
is important to Sellers since they do not want to accept an offer<br />
that is likely to fall through because financing cannot be obtained.
WHAT TO EXPECT IN THE CURRENT MARKET<br />
Navigating and understanding the psychology of the market can<br />
be very complex. In your search for a home, it is likely you’ll<br />
come across different types of Sellers. Each one will have<br />
different closing time frames, negotiation styles, pricing<br />
strategies, previous biases, and time frames for accepting your<br />
offer. Without knowing the varying characteristics of the<br />
different types of Sellers it can be frustrating as a <strong>Buyer</strong>.<br />
One distinct challenge of our current market is low levels of<br />
inventory in select areas and price ranges. There has never<br />
been a better time than now to work with a proven, professional<br />
who is committed to your home buying success.
It came on the market last night.<br />
You may not find it on Zillow.<br />
But you will on IdahoRealEstateSearch.com<br />
When you want the most accurate, up-to-the-minute, Boise area<br />
real estate information, you may not find it on a “last week” national<br />
site.<br />
IdahoRealEstateSearch.com, powered by local IMLS data, is the first<br />
place that local real estate information is updated. In addition to<br />
finding every home currently on the market, you can:<br />
• Research Neighborhoods<br />
• Search for Open Houses<br />
• Learn what your current home is worth
GETTING TO THE FINISH LINE<br />
Now it’s time to get to<br />
work and find you a<br />
home. Before we can<br />
close on the purchase<br />
of your new home, we<br />
need to take some<br />
steps to make sure the<br />
purchase is a sound<br />
decision.<br />
STEP 1<br />
BUY WITH CONFIDENCE<br />
It is important to consider all your priorities when searching for a<br />
home. At a certain price which features do you want and which<br />
features do you need? For instance, would you trade fewer<br />
bedrooms for a larger kitchen? A longer commute for a bigger<br />
lot, or lower cost? You’ll want to consider all your needs in<br />
advance.<br />
We will work with you to narrow down your selection of homes<br />
based on the criteria to find the top choices. The market is<br />
always in flux and never static so it is important to have<br />
representation working for you who has access to multiple<br />
options of homes available for purchase.<br />
Sometimes, new construction may be the best option, and other<br />
times it may be a pre-existing home.
HOW TO DETERMINE OFFER PRICE<br />
STEP 2<br />
OFFER WITH EXPERTISE<br />
The price you offer for a home is based on a wide variety of factors.<br />
These factors are specific to the local market, your financial situation,<br />
and the determined property value.<br />
Other, may include days on market, the condition of the home,<br />
desirability of the neighborhood, sales price of comparable homes,<br />
the re-sale potential, and always the Seller's motivation level. We use<br />
specially-developed tools and training to help you get the home you<br />
want at the best price possible. We have access to up-to-the-minute<br />
information about the Boise area market, including specifics in your<br />
preferred neighborhood or community. A comparative market<br />
analysis or “CMA” will be used as a guide in making an offer that is in<br />
tune with the current market. Tools and data will take into account all<br />
the factors that may affect a home’s value and potential price.<br />
We will work closely with you to effectively advise on a fair offer<br />
price. There will likely be inventory conditions, competition factors,<br />
seasonal trends, neighborhood amenities, and other influences that<br />
can affect demand. Proximity to schools, parks, shopping, and transit<br />
can play a significant role in determining your offer price.<br />
DAYS ON MARKET<br />
CONDITION<br />
MORTGAGE RATES<br />
LOCATION<br />
SIMILAR<br />
INVENTORY<br />
5
“PENDING” PROCESS<br />
When a Seller accepts your contract to buy their home we say<br />
that the home and offer is “Pending”. There are sequential<br />
steps that must be completed before the purchase is complete,<br />
which happens at the “Closing”. The steps include:<br />
TITLE COMMITMENT<br />
This is a search and examination of the public records for<br />
matters affecting the title to the real estate being purchased. It<br />
may include looking for unpaid taxes, easements, names of<br />
people on title and outstanding liens and mortgages.<br />
INSPECTION<br />
This is where you as the <strong>Buyer</strong> get to hire a third-party, notrelated-to-the-transaction,<br />
person to inspect the physical<br />
conditions of the property you are buying. They will inspect the<br />
roof, the attic, the crawlspace and all rooms of the structure.<br />
It is strongly recommended that you attend the inspection or at<br />
least the tail end, so that if you have any questions regarding<br />
the property you will have the opportunity to ask the inspector.<br />
The typical inspection takes approximately 1 to 2 hours and the<br />
cost is your responsibility as the <strong>Buyer</strong>. Every inspector is<br />
different and the time it takes depends on the square footage<br />
and acreage of the property. At the conclusion of the<br />
inspection, the inspector will give you a detailed report of items<br />
found that may be of concern. These items can be addressed<br />
with the Seller as an addendum to the purchase agreement.<br />
6
STEP 3<br />
MANAGE THE PENDING PROCESS<br />
APPRAISAL<br />
An appraisal is a standard part of the lending process. Banks and<br />
mortgage companies will grant their loan based on the appraised<br />
value of the property (as the home will be used as collateral for<br />
the mortgage). An appraisal is done by a state licensed Appraiser<br />
and is much more detailed than a CMA. Some items in the<br />
appraisal will include comparing the subject property with three<br />
similar properties in the area that have recently sold. The<br />
Appraiser will assess the real estate market where the subject<br />
property is located and highlight any negative aspects affecting<br />
the market value like poor physical conditions, deferred<br />
maintenance, or neighborhood factors.<br />
LOAN CONDITIONS / CLOSING CERTIFICATION<br />
When the lender has fully approved the loan a closing certification<br />
is provided to the <strong>Buyer</strong>. This is a document which states the<br />
terms under which the lender agrees to make the loan. It will<br />
include the interest-rate, length of the loan agreement, and any<br />
requirements the <strong>Buyer</strong> is expected to meet.<br />
FINAL WALKTHROUGH<br />
As a <strong>Buyer</strong>, you will be given the chance to look at the home in<br />
person (“Walkthrough”) to make sure it is in the same condition as<br />
when you first saw it and signed the purchase agreement.
STEP 4<br />
CLOSING DAY<br />
Closing day brings together all the parties in a real estate<br />
transaction. It is sometimes called settlement or signing, but in<br />
most cases, you will go to a Title Company to sign the paperwork<br />
related to the purchase. The closing takes about an hour and will<br />
be conducted by a trained representative of the Title Company<br />
who will compile all the documents needed to transfer title in the<br />
property and record those documents with the county. At closing,<br />
the Title Company will prepare a new deed. Your lender will<br />
require that you sign the loan documents and deed as evidence<br />
that you are responsible for repaying the loan. You may be asked<br />
to set up an escrow account. This is a neutral depository for funds<br />
that will be used to pay expenses incurred by the property such as<br />
taxes and property insurance that are due in the future.<br />
There is little a <strong>Buyer</strong> needs to bring to closing other than their<br />
state-issued identification and possibly a cashiers check for any<br />
amount above and beyond the loan. Be prepared to sign multiple<br />
pages of documents.<br />
If there is a mortgage involved in the transaction, the funding will<br />
occur soon after the closing. Once the funding and final recording<br />
have happened, the Seller receives their payment for the home<br />
and the <strong>Buyer</strong> receives ownership…the keys, garage door<br />
openers, etc.<br />
Congratulations! We made it and you have a home.<br />
7
Live in the Treasure Valley<br />
Let Accel Realty Partners handle all the details of your new<br />
home purchase in the Boise area. Our neighborhood experts<br />
service the entire Treasure Valley with decades of combined<br />
experience to better serve you. Let us show you the different<br />
“hot spots” around town, our favorite restaurants, and point<br />
out what school districts and programs might make your<br />
little ones feel right at home.<br />
Visit IdahoRealEstateSearch.com and start looking for<br />
properties from your computer or phone, with new listings<br />
coming on every few minutes.<br />
Call 208-450-3000<br />
8
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