BUYER’S BOOK
W I T H
B R E N D A
C H A R L S O N
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GETTING STARTED A home is one of the largest investments most people will ever make, it’s important to have a clear understanding of your priorities. Consider why you’re interested in buying a home. Is it for investment purposes? Are you tired of paying rent? Has your marital status changed? Or maybe you’re expecting an addition to your family. These are just a few reasons people decide to buy a home. Whatever your circumstances, once you’ve determined what is important to you, the process can become much more focused. For example, a young single person may choose proximity to downtown, whereas a young family may consider a quiet neighbourhood close to schools, churches and parks. The investor will look for property that will generate a positive return. After establishing the type of neighbourhood that best suits your needs and lifestyle, recognizing that home prices vary by area can lead to finding a fit between your budget and location. The search for a good mortgage is also an essential step. This brief overview highlights only a few of the considerations required when making an intelligent purchasing decision. The pros and cons must be weighed and all aspects evaluated.
REAL ESTATE MADE Simple. 3
ABOUT THE AGENT Brenda Charlson epitomizes integrity, energy, hard work and creative service in every detail of your real estate transaction. Brenda grew up in the Midwest and has resided in Dubuque, Iowa for the past 20 years. She started a full time career in real estate 18 years ago. Brenda has continued rising early, working hard and has since built a successful career in real estate. She has worked many aspects of the industry representing sellers, buyers, investors, home builders and banks in both the residential and commercial market. Aside from her real estate life, Brenda enjoys spending time with her husband, children and their families. In her spare time she enjoys walking, reading, boating and motorcycle riding. Brenda has been trained and inspired by some of the best in the business. She flies the country to continually learn and stay on top of the latest trends so she can offer the tri-state area the best real estate services. Brenda uses her experience and foresight to proactively address details before they become a problem. She will initiate communication in every detail of the transaction, from the first phone call all the way to close. Five words you can count on from Brenda Charlson, integrity, commitment, passion, reliability and authenticity.
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Do you want an agent who works with you or for you? My goal is to work with you to help you reach your real estate goals.
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CHOOSING YOUR AGENT WHAT TO LOOK FOR IN AN AGENT 1. EDUCATION. The most important factor in choosing a real estate professional is their education in the real estate industry. This agent is committed to education and spends time and money on continuous trainin that ensures he/she a solid understanding of the market and his/her clients’ needs. 2. EXPERIENCE AND EXPERTISE. You want a fulltime agent who is familiar with your area and with the type of property you want to buy. Does your agent employ a diverse range of search strategies? How tech-savvy is your agent? How many similar properties has he or she helped people buy in the past? 3. AVAILABILITY AND COMMITMENT. Your agent should be capable of prompt and decisive action during the course of helping you find your home. Does your agent make it a point to keep in touch with you constantly? Can your agent easily be contacted in case of emergencies or even for the simplest questions? Is your agent available on the weekends or in the evenings when most buyers are out looking? 4. EMPATHY. Does your agent take the time to listen to your goals and clarify your needs? Can your agent understand your unique situation and be genuinely concerned about the outcome of the process? Your agent will be your guide and partner in this crucial decision, so it is important to find one with whom you can get along. 6
As a buyer, you have a choice in representation. Most buyers today choose to have a Realtor® represent their interests in a real estate transaction. This is also known as Agency Representation (or fiduciary representation), which simply means that the Realtor® you hire is legally bound to represent your interests. This involves the highest standard of care and extreme loyalty to you, the “client.” Some agents will work with you as a “customer,” which carries a different level of responsibility. Most real estate professionals require a client relationship because it allows them to provide the full range of services that buyers need and deserve. Your Realtor® will discuss representation with you and will request your commitment in writing for this level of service. As a home buyer, it’s important that you find someone you feel completely comfortable with, who you can trust, and who listens to you and respects your views. Your Realtor® must have the market knowledge and expertise, but at the end of the day, it’s your home and your investment, so you must be able to work well with your agent. Experienced, professional Realtors® understand and excel at this.
Making Real Estate
Real Simple! 7
STEPS TO BUYING A HOME STEP ONE Your first step to buying a home is to first ask yourself why you want to buy a home: to stop paying rent? To start building equity? To have a place of your own? To raise a family? To entertain business associates? To move up to a bigger house? Next, list what kind of home you’d like and where you would like to be. Be specific. Separate the “must haves” from the “want to haves.” Think of yourself as zeroing in on a target, going from the general to the specific. Consider area (city, suburban neighborhood, country); community (north, south, east, or west side); neighborhood (older and settled or sparkling new; a particular school zone; recreational facilities; and other community services such as transportation, day care, library, stores, entertainment). Ask yourself how many minutes you are willing to commute to work. Think about home styles. How much space do you need? Does your situation require a one-level home, or are stairs acceptable? Consider size and kind of property. Do you want a newer home, or maybe an older one to fix up? Someday you or your heirs will want to sell. Consider how long you expect to live in this particular home. LOAN PRE-QUALIFICATION Once you have addressed the above needs, your next step in the purchasing process is to get pre-qualified with a mortgage company. This can be done over the phone or even online in a matter of minutes. “Call me and I will refer you to a mortgage professional that has an excellent reputation and track record for successfully acquiring loan approval for their clients.” 8
HOW YOUR AGENT WILL HELP YOU WE WILL FIND THE RIGHT HOMES FOR YOU Once you’ve been pre-qualified and know what price range you want to stay in, your Realtor® can help you determine which properties fit your needs by using the (MLS) Multiple Listing Service system to locate them. Your Realtor® has the best possible resources and communication systems available today to help you locate the homes on the market that match your specifications. You can even search our listings on our website. WE WILL HELP YOU EVERY STEP OF THE WAY Your Realtor® will help you complete your financing and inspections, and close on the transaction. His/Her top priority is to make sure that your home buying experience is pleasant, cost-efficient, and successful. The buying process can be a stressful one, but your Realtor® can assure you, he/she will be by your side every step of the way. Your Realtor® wants to make the process as easy and seamless as possible and ensure you reach your real estate goals.
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COST OF OWNERSHIP Determining how much you can truly afford involves meeting with a mortgage representative at a financial institution. Most financial institutions, as well as Canadian Mortgage Housing Corporation, have online mortgage affordability calculators that allow you to plug in your basic numbers to see how much of a loan you might qualify for. Consider these calculations an estimate — a mortgage representative will take your preliminary calculations and see if they hold up to further scrutiny. It’s important to be honest with yourself when you do your own financial review. If you underestimated your household expenses to make your financial picture look brighter than it actually is, your mortgage representative will probably expose a more realistic view. The mortgage representative will then come up with some close-to-final numbers, presenting you with a preliminary figure for pre-approval. Now you should prepare a thorough and realistic checklist of your current household budget, say, if you’re renting an apartment and your expected budget in your prospective new home. You’d be surprised how some new items — such as additional insurance or costs for general repairs — can add to your expenditures as a homeowner. Make sure you take all of these items into consideration when calculating your mortgage affordability. 10
THE IMPORTANCE OF NOT OVERSPENDING Real estate experts cite overbuying as one of the most common mistakes first-time home buyers make. Whether they got caught up in a bidding war or fell in love with a home they just had to have, many people spend more on their new home than they can afford. Months later they may realize that their purchase has left them “house poor” with no money left to contribute to savings, other necessities, or even rainy day funds. This further underscores the need to be honest and realistic with your mortgage calculations, as well as the importance of getting pre-approved for a mortgage, since it can actually protect you from going overboard.
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AN EXPERIENCED REALTOR® DIFFERENCE
MAKES A
Doing the little things in order to prepare you to buy your first or next home could be the difference between you getting what you want and settling for something else. An experienced Realtor® understands what little things truly matter and ensures you are taken care of and informed fully every step of the way. Remember, you want an agent that works with you, and for you.
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MORTGAGES & BUYER’S PREP DIFFERENT TYPES OF MORTGAGES Getting a mortgage is one thing. Getting a mortgage that best suits your situation is another. Some mortgage have less strings attached but have more strict stipulations, while others may be harder to get, but have more flexibility. It is important to have all the information about mortgages available to you before you decide to move forward in the purchase of a your home. Different types of mortgages can help you find the mortgage that best suits you. INCOME & ASSETS Most loan programs require the lender to verify all of your income sources. Typically you will need to provide pay stubs, your T-4 and copies of your tax returns. Lenders will also want to go through your assets and how much of a down payment you will have when determining your loan approval. CREDIT HISTORY All lenders review a borrower’s credit history to determine the type of credit used, the amount owed, and the borrower’s repayment history..
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DETERMINE YOUR PRICE RANGE The best place to start when buying a home is to find out how much house you can afford. Your Realtor® can refer you to a mortgage broker who can assist you with determining how much of a down payment you can afford, comfortable monthly payment, and the type of loan that fits your needs best. Serious buyers who are highly motivated should go through the effort of getting pre-approved; not only will this allow you to focus your home search, but it will also position you as a serious buyer in the eyes of sellers when the time comes to make an offer. MAKE A LIST AND PRIORITIZE Imagine your ideal home and location. Now make a list of everything you envisioned, take that list and break it down from high to low priority. High-priority items are the things you cannot live without in your new home. (Large Bedrooms, Large Closets, High-end appliances, proximity to amenities and schools, etc.). Lower-priority items are those that are an added bonus, but not necessary. (Jetted-tub, landscaped yard). TOUR HOMES IN PERSON AND ONLINE Some people look at several homes before finding just the right one. And others find “the one” immediately. Thanks to the internet, you can streamline your search process significantly by checking out homes for sale online. You can visit open houses and preview everything that’s for sale in your market on one of our websites.
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INSPECTIONS & OFFER THE INSPECTION PROCESS Hiring an experienced home inspector will help you discover it’s true condition and help you discover what may lie behind closed doors that you can not see. We have a group of trusted inspectors who can assist you in making sure your potential purchase is a safe one. Some of the things home inspectors investigate are: > > > > > > > >
Structural (Cracks in walls, concrete floor or foundation) Electrical (Over-wiring, over-lamping, or lights flickering) Interior (Poorly maintained/falling apart, mold issues) Exterior (Grade sloping, eavesthrough, siding/stucco) Roof (Damaged or worn shingles, water penetration) Heating (Poor ventilation/circulation or older furnace) Plumbing (Drippy faucets, runny toilets, leaky pipes) Insulation (Heat loss, poorly blown attic insulation)
The inspection is vitally important if you want to learn about your new home and determine its condition. Being an informed buyer means you should always be aware of the potential pitfalls of the buying process and understand what to expect throughout the process. Home inspections can give you details of the home that help you make an informed decision.
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MAKING A REASONABLE OFFER MAKING AN OFFER YOU CAN AFFORD This is where the rubber meets the road — and where your Realtor® earns his or her stripes. After weeks or months of planning, preparing and searching, you’ve finally found a home on which you’re ready to make an offer. It’s an exciting time, to be sure, but also one where emotions can easily come into play, particularly if you’ve found a home you love and really want. Your Realtor® will help you keep your emotions in check, balancing against the realities of the market. Think of it as a game of poker — you don’t want to be so excited that you tip your hand to the seller. Nor do you want to be too conservative and bid so low that you lose out. If you’ve taken the important step of getting pre-approved for a mortgage, you know exactly how much you can afford, and are less likely to get caught up in a bidding war that will carry you above your price point. If you’ve done your research, received mortgage pre-approval, and looked at a good selection of houses with your Realtor®, you’re going to feel well prepared and in control. Sure, you may really love this one house and desperately want it, but you should also remember that there are likely others out there just like it or better. And if that voice of reason doesn’t pop ito your head at negotiation time, your Realtor® will help caution you against getting carried away. Of course, the interest and potential competition for a property depends on market conditions. If it’s a buyer’s market, you hold the cards and you’ll be confident in knowing there are other options out there. If, however, it’s a seller’s market, acting fast to make an offer that you can afford and is acceptable to the seller is a combination of instinct, preparation, and the experience of your Realtor®. 15
CHECKLIST 2 WEEKS BEFORE YOUR MOVE Notify these professional services of your move. These services include: Accountant Attorney Doctor Dentist Financial Planner Health Insurance Provider Insurance Agent Schools Notify other services/accounts of your move. Examples of these may be auto companies, credit card companies, banks, health club memberships, subscription services (e.g. magazines, newspapers), etc. 1 WEEK BEFORE YOUR MOVE Review your moving plans with your moving consultant. Figure out budget to accommodate moving. Pay for move and print two copies of your moving bill. Notify friends and family of your new address and phone number with a free Moving Notice. Pack an essentials box to keep with you during the move. Drain gas and oil from lawn equipment, gas grills heaters, etc. Drain water hoses and waterbeds. Empty and defrost refrigerator at least 24 hours before the move. MOVING DAY Place carpet, floor and door frame protectors throughout your home. Load goods in a pre-designated order, saving “last load” items for the rear of your shipment. Check every room and closet one last time to make sure nothing is left behind. Plan first night’s dinner (pizza always works). Leave a note with your new address so that future residents can forward stray mail. 16
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AVOIDING BIDDING WARS
Several factors are at play come offer time: price, which speaks for itself; inclusions, which cover exactly what is included in the deal, such as appliances; and other conditions such as closing date. You want the best combination of those items that suit you, as does the seller.
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Real estate can be complicated... We make it real simple. 18
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563.580.2345 brenda@dbqhomes.com brendacharlson.remax-central.com