Buyer's Guide - ARC Realty

THE ARC REALTY Advantage

ARC Realty is a full-service real estate brokerage specializing in residential and commercial sales as well as development, relocation, and comprehensive move management. We gather data from the leading industry tools and technologies to help our agents and their clients make informed decisions when pursuing real estate opportunities.

Our focus is relationships over transactions. We secure, build, and maintain enduring connections with our agents and clients by providing the highest levels of personalized service and counsel. We are dedicated to contributing to the communities in which our agents and clients live, and actively serve as engaged corporate citizens.

We are a family, committed to building our community one home at a time.

Home Buying & Selling Timeline

Find a great Realtor

Read reviews, talk to and meet in person with a Realtor to decide if they are knowledgeable and the best fit for helping you achieve your goal of home ownership. Having representation is important and there’s no cost to you to have this help!

Get pre-approved

Assess your situation

Do you have money saved? What are you comfortable spending monthly on a payment? Make a list of needs/ wants in a home.

6 Months

Selling

Find a great Realtor

Don’t just hire someone who’s offering to sell your home for the highest price. Ask how many homes they sell. How many years have they been in real estate? How are they going to market your home? How will they communicate and how often? How long did it take to sell their last 10 listings?

It’s best to choose a local lender and get a pre-approval letter before starting to tour homes.

Have your Realtor set up an MLS Saved Search notification

Homes are entered on the Multiple Listing Service (MLS) so they are available there first before any other site! Your Realtor can set up instant notifications so you see homes before anyone else.

Start Looking

In-home tours are the best way to preview and choose a home. Give your Realtor notification and have them set up tours of your favorites.

3 Months

Know where you’re going

If you sell before you buy, where will you go? If you are building, will you rent? Will you buy before you sell? Talk to your Realtor about goals and next steps to strategize together.

Look at the calendar

Work with your agent on a timeline for selling your home.

Make small repairs

Take the time and effort to fix small items.

Deep clean

Whether you do it or you hire a cleaning service–deep clean your home, including floors, grout, windows, kitchen, and bathrooms.

Make an offer

Stay strong

It’s a seller’s market. Buying can be competitive and stressful. Trust your Realtor and keep your goal in focus.

2 Months

1 Month

Under Contract

Once your offer is accepted, you are under contract and in the critical part of the process.

3 Weeks

Contract to Close

This is a 30-day process and includes earnest money being deposited, resubmitting paperwork to the lender, home inspection, shopping for insurance, choosing a home warranty, and wiring funds to the closing attorney.

Final walkthrough

The day before or day of closing you’ll walk through the home one more time making sure any repairs were done and the home is still in the expected condition.

Closing Day

Yay! Time to sign and buy your home. This will take place at an attorney’s office during business hours and will take about an hour. Make sure any money you were supposed to bring is at the attorney’s office and you have a non-expired driver’s license OR passport with you. Depending on the contract you should receive keys today or 1-2 days after closing.

Stage your home

This means declutter. Showcase your house, not your stuff. Make sure you have curb appeal.

Get professional photos taken

Great photos of your home generate more interest and showings, which generates more offers.

List your home on a Wed, Thurs, or Fri

On weekdays, real estate sites get 20% more traffic than on weekends. WedFri is the optimal time to list for the most activity on your home on the 1st weekend.

1 Week

Be receptive to feedback

Your agent will likely review feedback with you weekly. Take it constructively and keep your goal in focus.

Review offers

When an offer comes in, your agent will present it along with a net sheet showing your profit on the sale.

Closing day

Time to sign and sell your home. This will take place at an attorney’s office during business hours and will take about an hour. Once everyone has signed, you’ll receive a check or wire transfer of your money from the seller. Depending on the contract, you may be already moved out and provide keys. Otherwise, you will do this 1-2 days post-closing.

Contract to Close

This is when an experienced agent representing you can make a difference. Negotiations continue during this 30-45 day window.

Contract to Close Explained

The Closing Process

Offer

You and your ARC agent

• Agent helps negotiate the offer

• Buyer and seller agree on price and conditions

• Agent sends signed contract to closing attorney

• The buyer orders mechanical and general inspections

• Buyer makes loan application (if applicable)

Contract

Closing Attorney and/or Title Company

• Receives executed contract

• Collects title and tax information

• Reviews title and notifies all parties of any defects

• Title company issues title commitment

• Title commitment is sent to lender, ARC agent, and attorney

• Attorney receives closing instructions from lender

• Attorney consolidates all closing documents

• Closing occurs

Distribution of Funds

• All documents are recorded in the county clerk’s office

• Title policy sent to mortgagee and owner

Loan

The Mortgage Company

• Verifies all financial information on buyer

• Orders, receives, and reviews appraisal, property survey, and flood certificate

• Compiles loan package and submits to underwriter

• Loan is reviewed by underwriter

• Collects and packages additional materials as requested

• Repackages and resubmits to underwriter

• Loan is approved

• Prepares and delivers loan documents and funds to closing agent

• Gets buyer approval

• Closing occurs

• Review final signed documents from closing agent

Why Use a Buyer’s Agent?

Working with a buyer’s agent

As a buyer, you have the option to work with a lice nsed real estate agent who will guide you through the process of getting prequalified, selecting a home, making an offer, negotiating the contract, and navigating the closing process. The best part? It’s at no additional expense to you. In a typical real estate transaction, the buyer’s agent gets paid by receiving a percentage of the total commission paid by the home seller. You, the buyer, have a protector and an advocate at no additional cost.

What is a buyer’s agency agreement?

A buyer’s agency agreement is a formal commitment between your Re altor® and you. This allows the agent to exclu sively represent you and negotiate on your behalf. Agents have a fiduciary obligation to hold your interests above their own, and this agreement provides them with a guarantee that their hard work won’t go to waste. Agents do not receive a commission until after a transaction closes, so this agreement keeps the transaction fair to everyone involved.

What does a buyer’s agent do?

Home Buyer Glossary

STAGE 1: Your Income

Annual income:

Money you receive over the course of a year, including wages or salary, alimony or child support, rental payments, commissions, investments, or other sources.

Conforming loan:

A mortgage loan that meets guidelines established by Fannie Mae and Freddie Mac and falls below a loan amount specified by the Federal Housing Finance Agency. In 2019, that amount was $484,350 for a single-family home in most of the U.S.

Debt-to-income ratio (DTI):

A percentage that measures your ability to repay debt by comparing your monthly debt payments to your monthly income before taxes. Many mortgage lenders prefer this figure (including mortgage payment) to be under 36 percent.

Down payment

The amount of cash you can put toward the purchase price of a home. Down payments often range from 3 to 20 percent of the home price.

Loan-to-value ratio (LTV)

The total amount of your mortgage compared to the home’s appraised value, expressed as a percentage. If your down payment is less than 20 percent of the purchase price, your LTV is above 80 percent, so you generally pay a higher interest rate on your mortgage and will pay private mortgage insurance (PMI).

STAGE 2: Acquiring a Loan

Loan Estimate (LE)

A disclosure to help consumers understand the key loan terms and estimated costs of a mortgage. After a consumer submits their information, the lender is required to provide this form. All lenders are required to use the same standard form so consumers can compare and shop for a mortgage.

Prequalification

A lender will estimate in advance how much you can borrow to buy a home based on information that you provide. The prequalification is not a commitment to lend and you will need to submit additional information for review and approval.

Preapproval

A lender’s conditional agreement to lend you a specific amount of money, made after confirming your financial information such as income and assets. Conditions may include a home appraisal and that there are no significant changes to your finances.

PITI

An acronym for principal, interest, taxes and insurance. Sometimes called your monthly housing expense, it includes your mortgage payment and a monthly portion of your real estate taxes and homeowners insurance.

PMI

An acronym for private mortgage insurance, which protects the lender against losses if you cannot repay your loan. Your lender will most likely require it if your down payment is less than 20 percent.

STAGE 3: The Offer

Comp

Short for “comparables.” These are recently sold properties similar to the home you want, with approximately the same size, location and amenities. They help an appraiser determine a property’s fair market value.

Contingencies

Conditions in a sales contract that must be satisfied before the home sale can occur. Some common contingencies: The appraised value must support the sales price, the house must pass inspection, and the borrower must be approved for a loan. Others might require a check for termites or the sale of the buyer’s current home.

Inspection

A visual and mechanical examination of a home to identify defects and assess the home’s condition performed by a licensed individual.

STAGE 4: The Mortgage Process

Appraisal

An informed estimate of a home’s value, generally done by an independent, professional licensed appraiser and typically required and ordered by the lender in conjunction with the mortgage application.

Closing costs

Also known as settlement costs, these are the costs incurred when getting a mortgage or buying a home. They might include attorney fees, preparation and title search fees, discount points, appraisal fees, title insurance and credit report charges. They are typically 2 to 5 percent of your loan amount and are often paid at closing or just before.

Escrow

Funds deposited and held until a specific date is reached and/or a specific condition is met. For example, when you make an offer on a home, your earnest money deposit may be held in an escrow account until closing. Some lenders may require borrowers to establish an escrow account at closing comprised of future tax and insurance payments. The loan servicer then makes your property tax and insurance payments on your behalf.

Mortgage points (or discount points)

An amount paid to the lender, typically at closing, to lower (or buy down) the interest rate if the buyer chooses to do so. One discount point equals one percentage point of the loan amount. For example, 2 points on a $100,000 mortgage cost $2,000. You will pay these back during tax season.

Origination fee

A fee from the lender that covers expenses of processing a mortgage loan. It is usually a percentage of the amount loaned—often 1 percent. It can be expressed in the form of points or a flat fee.

Title insurance

Insurance that protects against issues, such as a tax lien or other legal claim, that would affect ownership of the property.

Underwriting

The lender reviews submitted documents to verify the borrower’s finances and other factors related to the home, such as the title search and appraisal, then decides to approve or deny the loan.

STAGE 5: Closing Time

Closing

The last step of homebuying, also called the settlement. You sign all the necessary documents to finalize the sale and take responsibility for the mortgage loan.

Closing Disclosure (CD)

A document that provides key information about your loan, such as the interest rate, monthly payments and closing costs. The lender must give you this document at least three business days before you close on the loan, and the information should match the Loan Estimate you received when you applied. You can find out more about what’s on a closing disclosure from the Consumer Financial Protection Bureau.

Deed

A document that legally transfers ownership of real estate.

Moving Timeline and Checklist

6-8 Weeks Before

Decide how you will move: DIY: You pack, lo ad, transport, unload, and unpack yourself. Hybrid: You rent the truck, movers do the rest.

Full Service: Movers do it all! Truck, driving, and heavy lifting..

Contact a moving company or truck rental service to reserve your moving dates. Get an estimate and don’t be afraid to compare rates.

Organize personal records such as insurance, dental, medical, and financial documents.

Start to use up things that cannot be moved and purge any items that don’t need to come with you.

4-6 Weeks Before

Alert post office, businesses, and subscriptions of your change of address.

Plan to cancel/transfer phone and utilities.

Prepare a list of people to notify of your move and new address.

Organize items by “keep, donate, and throw away”

Consider a garage or yard sale for unwanted items or donation pickup. If needed, schedule a dumpster or large item pick-up from your city for trash.

2-3 Weeks Before

Consider helping your children host a “going away” party.

Assemble packing materials (including boxes, tape, markers, knife, plastic wrap).

Pack up smaller and less often used items.

Buying new furniture? Choose and complete your purchases so they can be delivered to your new home.

You’ve found your new home and you’ve signed on the dotted line, but the work isn’t over! You can reduce the stress of moving by spreading out the important tasks in the weeks and months leading up to the move. We’ve created a timeline to help you consider and plan the actions and decisions you’ll need to make before moving day.

3 Days Before

Defrost freezer so it can dry for at least 24 hours if buyers will not be occupying immediately.

Set aside valuables and personal documents not to be packed on the moving van.

Prepare all your day-of essentials such as paper towels, toothpaste, tool kit, soap, toilet paper, bath towels, trash bags, snacks, and paper plates.

Pack an overnight bag with your moving day essentials such as clothes, toiletries, medications, and chargers.

Finish all mandatory cleaning of your old place. If you’re renting, it’s time to do a walkthrough to secure your initial deposit.

1 Day Before Moving Day

If you’re doing a DIY or hybrid move, pick up the rental truck.

If you’ve hired movers, relax! Leave mirrors and pictures on the walls for the movers to pack. Don’t forget to take sheets and blankets off the beds.

If you didn’t hire movers, begin the process of loading the truck with your belongings.

Take pictures of the back of your electronic devices to remember which wires go where.

Save all documents needed for tax returns.

Remain with movers until all of your goods are loaded.

Be sure to confirm your new home’s address and directions with the driver.

Leave a note behind with your new address and phone number so the new occupants can forward mail.

Prioritize Location and Amenities

Almost every home purchase involves some degree of compromise, which is why it is important to prioritize your wants and needs before you begin your search. There are many variables to think about depending on your lifestyle, budget, and future plans, but some universal considerations include the following. Please fill in the following wants and needs and circle the rate of importance for the numbered desires from 1-10 (10 being the most important).

LOCATION

There are so many great neighborhoods, each with their own character. Consider the factors that are important to you, such as schools, transportation, and neighborhood amenities (i.e. restaurants, shops, and parks). Your ARC Realty agent can recommend the best fit for you. If you know any specific neighborhood(s) you are interested in, list them below.

Neighborhood:

Neighborhood: Neighborhood : School System: School System:

LOCATION AMENITIES

PROPERTY TYPE - Home Features

Ideal Price:

Number of bedrooms:

Number of bathrooms :

Garage: Y/N Number of spaces :

PROPERTY TYPE - Type of Home Single Family:

Home:

Typical owners will stay for 8 years before selling, so always consider your long-term goals and needs.

Property Notes

Property Notes