YO U R H O M E BUYING GUIDE
The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
2 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
Our Team & RE/MAX
Let’s Do This!
Working for You
THE MEDLIN TEAM REALTORS®
804.564.1092 RemaxRyanMedlin@gmail.com TheMedlinTeam.com
3 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
THE MEDLIN TEAM The Medlin Team provides Guaranteed Exceptional Real Estate Services to home buyers and sellers in the area of Central Virginia, including the Richmond metropolitan area, Mechanicsville, Ashland, and the counties of Henrico, Hanover, New Kent, Chesterfield, King William, Powhatan, Goochland, Richmond, and surrounding areas. Ryan Medlin is our Team Leader, Laura works with both buyers and sellers, while Ashley and Krystal specialize in buyers. Alongside our team of Realtors, our Team Manager, Linsey, handles every contract. Whether you are moving to Richmond from another state, moving within the Richmond area, or looking to sell your Richmond area home, we can help you with all of your real estate needs. We would be happy to show you new homes, existing resale homes, land or building sites for your dream home, waterfront or golf course homes, townhomes, condominiums, vacation homes, investment properties, or any other type of real estate properties in which you might be interested. The Medlin Team knows real estate and we know Richmond and the surrounding counties. Much of our team has lived in the Richmond area their entire life and know the neighborhoods and the history of the area. Our families currently live in the areas of Chesterfield, Hanover, Henrico and Richmond City. We have over 75 years of combined experience as full-time professional Realtors and, as your real estate team, we can help you locate excellent restaurants, shopping, golf courses, fishing spots, sports facilities and associations, museums, and other places of interest. 4 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
WHAT OUR CLIENTS ARE SAYING “I can not begin to say how happy my wife and I were with the services provided by Ryan and his team. He was able to sell our house quickly and for a price that was above what other agents had "quoted" us. The professional photographer and house-staging he provided made our home stand out against others in the area. He also provided terrific advice during the sale and helped us negotiate the price of repairs down. I can not recommend him more highly”
“Ryan Medlin and his team are fantastic!! If you want to sell or buy a home, his team is the way to go. He has the utmost professionals working with us thru the entire process step by step. The resources he uses make this process a breeze from stagers to professional photographers to multiple website listings. He and his team are prompt and courteous, and the knowledge he has of not only real estate as a whole but also the area he serves is top notch. I would recommend him and his team to everyone! THANKS, RYAN, FOR ALL YOU DO FOR US “
“Laura extended a great deal of patience as I was a first-time home buyer on a limited budget. She was dedicated to helping me find the right house in the right neighborhood, which off and on took nearly a year to do. She took a great deal of personal care to research properties & neighborhoods, arrange convenient showings, and provide recommended loan officers/inspectors/closing attorneys. She guided me every step of the way with her vast knowledge, alleviating much stress and anxiety --and she even showed up on moving day to lend a hand! I ended up in a neighborhood and house I would not have imagined at the start of the process but I am thankful every day to be where I am. I am confident this would not have happened without her help. Thank you, Laura!” “Ryan helped my wife and I buy our first house in Henrico County. We first met him when viewing a property on the West End. He was showing the property to us and spent roughly an hour after this explaining the home buying process in Virginia despite the fact that we were casually looking at the house (we hadn't interviewed any Realtors yet). We had been to other showings prior to this and other real estate agents wanted to get us in and out in 15 minutes, so this showed he would go above and beyond for us when we started to seriously get into the home buying process - no interview was necessary after this point. During the transaction Ryan was basically on-call for us 24/7, and if he didn't answer his phone right away, he'd call within the hour. He definitely had our best interests at heart and we'd recommend him to anyone looking for professional, knowledgeable, and responsive Realtor to help with the home buying process .”
“You could not work with a better real estate agent than Ryan Medlin. He was very professional and always willing to go over and beyond to help us sell our home. He was very dependable and communicated effectively through the whole process. He also has a very caring and sincere personality which made us feel he really wanted the best for us. We highly recommend Ryan Medlin!! “
“Krystal was our buying agent for our new home and we could not be more happy with the professional service and advice she gave us. After our old home sold quickly, she immediately got us out looking for a new home. She met with my wife everyday for almost 2 weeks, visiting properties and actively sending us listings that might interest us. Her honest opinion on homes we saw and the negotiating process was refreshing. She helped us each step of the way, frankly we thought of her more as a friend than our agent by the end. Even after we closed, she continued to provide help on some minor issues in the new house. I feel like I could contact her anytime (within reason) to get her advice or help on any issue. Thank you Krystal!!!! “ 5 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
WHY USE A REALTOR Working with a REALTOR® can save you time, money and trouble. Nearly eight out of ten consumers believe REALTORS® can show buyers a better selection of homes than they can find on their own, according to an independent survey of the general public released by the National Association of REALTORS®. Seventy-eight percent of the general public believe real estate professionals offer them a broader selection of housing alternatives than they would otherwise find. Seventy-four percent agree that using a real estate broker saves time, and 70 percent agree that real estate professionals make buying or selling a home much easier.
THE ROLE OF A BUYER’S AGENT • •
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Be an adviser and advocate during the entire home buying process Take time to uncover the buyer’s needs and wants as well as what’s motivating their purchase Educate buyer’s on current market conditions Find a way for buyers to attain as many of their needs as possible when dealing with the realities of the marketplace and/or specific financial constraints Research homes in the area and sort through active listings to make suggestions after crossreferencing buyer’s needs (i.e. Which homes are located in areas that have retained home values? Which homes are located inside good school districts? Lower taxed areas? Easy work commutes? etc.) Help buyers achieve their lifestyle needs with a different set of features than originally anticipated (this is particularly useful when dealing with financial constraints)
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Aid buyers in narrowing their search until they have identified their top choices Handle the ins and outs of the negotiation process including the preparation of all necessary forms when making an offer and/or counteroffer Help with negotiation and purchases of any For Sale By Owner homes Provide valuable insight into the new construction industry, and expertise in contract writing, negotiation, and closing assistance when working with a builder Assist in securing the best possible financing and work to ensure that buyers receive exceptional service from everyone involved with the home loan. Provide oversight and follow up for any inspections deemed necessary Counsel buyers on how to handle any repairs needed on the property Be present at closing to ensure that all the buyer’s interests are protected 6
The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
THE HOME BUYING PROCESS •
FIND A REALTOR® WHO YOU CAN TRUST Now that you have chosen a specialized buyer representative who you can trust, you have accomplished the first step in the home-buying process. We will make sure that all of your needs are met and will be representing you through the entire process of buying your new home.
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YOUR OFFER Once you find your dream home, you should present a competitive offer immediately. Your buyer representative has extensive experience in contract negotiations; he or she will ensure that you get the home you want for a fair price—a transaction in your best interest.
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FINANCING PRE-APPROVAL An important aspect when starting the process of buying a home is to meet with a lender and get a pre-approval. Your buyer representative can put you in contact with a lender, if you desire, who can give you information about your approval and explain some of the financing options available to you.
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THE ACCEPTED OFFER When the seller accepts your offer, you will have what we call a pending offer. You want to make sure that every detail is handled accurately and immediately. We will ensure that your home closes properly and on time.
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INSPECTIONS Final details are handled and inspections are performed to ensure that the property is “perfect” for you. Contract details are further negotiated and we head to closing!
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SIGNING THE LOAN DOCUMENTS Be prepared to bring your cashier’s check, insurance binder, and identification to the closing. The next steps you take will be into your new home!
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NOW THE HOME IS YOURS! After the deed is recorded and a possession date is decided upon, pick up the keys and move into your new home!
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CONSULTING SESSION Your buyer representative will meet you one on one to discuss the features you desire in a home as well as to pin-point the area you wish to live in. THE SEARCH BEGINS Once you’ve established the type of home you’re searching for, it’s time to start looking. Your buyer representative is available to help you find your dream home.
7 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
SEARCHING ONLINE
www.TheMedlinTeam.com
www.realtor.com
www.zillow.com
www.remax.com 8
The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
HELPFUL MOBILE APPS MobileIDX We will provide you with a mobile IDX app that allows you to quickly and easily find information on homes listed in the MLS, complete with virtual tour, home photos, neighborhood maps, school and retail information, or other properties available in the area.. It also allows you to share favorite listings with others, or contact your agent directly. HomeSnap If you’re checking out a potential neighborhood and stumble across a home for sale, this free app for the IPhone allows you to upload a picture of the home and it will display available interior pictures, selling price, and previous sale history. The app culls data from Multiple Listing Service and allows users to schedule showings. House Hunter It’s hard to keep track of all the details when house hunting, but House Hunter does all the hard work for you by providing a scorecard that organizes notes and photos of potential homes. You can choose from more than 80 different home features to score potential homes and access a quick note feature to enter information about the homes.
AroundMe When it comes to real estate, it’s all about location. AroundMe shows retailers, restaurants and other establishments located in the immediate area to give you a sense of a potential neighborhood. The free app uses a GPS to determine your location and identifies the closets bank, bar, gas station, hospital, hotel, movie theater, restaurant, supermarket, theater and taxi. Mortgage Calculator The first step to the house-hunting process is determining how much home you can afford. The Mortgage Calculator from Left Coast R&D is a free app that lets you figure out your monthly mortgage payments based on the price of the house, the down payment and the interest rate. REALTOR.com This is technology’s greatest guide to listings. The app includes up-todate real estate listings in the U.S., including homes for sale, for rent or recently sold. Each listing includes photos, property details, open house information, and pricing. It allows you to share favorite listings with friends and family, and highlight a customized area that you would like to search. Best of all, it’s free! 9
The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
BUYER’S BROKERAGE AGREEMENT As of July 1, 2012, a new Virginia law requires that a buyer and an agent who have agreed to work together in an agency relationship set out the terms of that agreement in writing.
The goal of the law is to make sure that the obligations of the parties —the agent and the buyer —are set forth in clear and understandable terms and that this agreement is reached and entered into at the beginning of the representation rather than in the middle or at the end.
Nothing in the law requires the prospective homeowners to agree to a long-term brokerage relationship. Prospective home buyers can enter into a short-term written agreement or an agreement in which the agent will represent them only if they choose to purchase a specific property. The scope of the written agreement is negotiable. It must include a list of services the agent will deliver, a schedule of fees associated with those services and a definite termination date.
The short answer is that Virginia law requires it in order to protect you. The longer answer is that having something in writing —whether it covers a single property or a months-long relationship —ensures that both you and your REALTOR® understand exactly what’s expected from each other.
Be sure to discuss your options with your REALTOR®, and make sure all your questions are answered.
10 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
SERVICES WE’LL PROVIDE 1. We will arrange a free, no-obligation pre-qualification meeting for you with a foremost lender to find out exactly how much you qualify to borrow. 2. We will search the Multiple Listing Service for all homes listed by real estate companies to make sure that you know about every home or building site for sale in your price range. If you want a new home, we’ll find the builder who will build you the most home for the best price. 3. You will also have the use of our exclusive website, which includes features like automatic email notification as new listings arrive on the market, search-by-map, and more. 4. We will arrange private showings for any and all homes you wish to see or we will coordinate meetings for you with the best home builders in the area.
5. We can help you with negotiation and purchases of any For Sale By Owner homes. 6. When you find the right home or builder, we’ll assist you with preparing an acceptable offer that is in your best interest. 7. We will strategize about the offer price, financing terms, interest rate, and possession date. 8. We will recommend the best services: home inspections, appraisal, home warranty. 9. We will obtain answers to any and all questions you may have.
10. We will present the offer on your behalf to the seller, the builder, the For Sale By Owner, or the seller’s agent. We will negotiate in your best interest at all times to get you the best deal possible. 11. We will help you find the greatest possible financing. 12. We will work hard to ensure that you receive exceptional service from everyone involved with your home loan. 11 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
EVERY BUYER SHOULD KNOW 1. Property taxes and qualified home interest are deductible on an individual’s federal income tax return in most cases. 2. Many times, a home is the largest asset an individual has and is considered one of the safest investments available. 3. A homeowner can exclude up to $500,000 of capital gains if married filing jointly or up to $250,000 if single or married filing separately. The home must have been the taxpayer’s principal residence for the two of the last five years. 4. A portion of each amortized mortgage payment goes toward the principal, which is an investment. 5. A home is one of the few investments you can enjoy by living in it! 6. The majority of the time, a REALTOR® can show you any home, whether it is listed with a company or a builder or is even a For Sale By Owner. 7. Working with a REALTOR® to purchase a For Sale By Owner property is very advantageous, because someone will be looking out for your best interests.
8. A real estate professional who can provide you financial information with a computer will give you a distinct advantage in making the right decisions.
9.A pre-approved program will actually approve you for a specific loan amount subject to the property. This will give you confidence and will help when negotiating with the seller. 10.Your real estate professional can provide you with a list of items that you’ll need to make a loan application, so you’ll be ready when the time comes. 11.The right to conduct a property inspection, included in your purchase agreement, gives you the ability to negotiate with the seller once you know all the facts about the property’s condition. 12.A Home Protection Plan can provide coverage for selected items, such as central heat and interior plumbing, built-in appliances, water heaters, etc. If the seller is not providing this coverage, you can purchase it yourself. 13.Ask your real estate professional if he or she is familiar with the neighborhoods you want to live in. Ask how many homes he or she has sold in those areas in the past year. 14. Working with a REALTOR® who has an office “team” helps assure the buyer that the transaction will be handled smoothly. 15. In a “seller’s market,” don’t go looking for a deal. Set your sights on the right house for you, and then let your REALTOR® help you negotiate the best price and terms. 12
The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
NEW CONSTRUCTION Why should I use an agent to purchase a new-construction home? The advantages of having us help you purchase a new home are the same as those for purchasing a resale home. We can provide you with valuable insight into the new construction industry, help you find the perfect home quickly, and then provide you with expertise in contract writing, negotiation, and closing assistance. The builder has a professional real estate representative who watches out for his or her best interests, and you need and deserve the same expert representation watching out for yours. Buying a new home is a little more difficult and time-consuming than buying a resale home. We can professionally guide you through this process. Having spent years working with builders, RE/MAX Commonwealth has a rapport with them and a database of information about subdivisions, floor plans, etc. We are also familiar with new home warranties and the nuances of the builder’s purchase contracts and various home inspections. It is very important that your interests be professionally represented when you are entering into a contract for a semi-custom or a build-to-suit home. These transactions are complex and the contract details must be exactly in order to protect you and to ensure that you get exactly the home you want!
Are there any advantages to not using an agent to purchase a new home? There is no financial advantage for you to buy directly from the builder. Builders have a “single price” policy, meaning that you will be charged the same price whether your interests are represented by an agent or not. Just as in any resale, the seller pays your agent’s fee. Most builders will make you give up your right to representation if you visit their model homes without an agent on the first visit. Therefore, please call us if you would like to look at some model homes, so you are given the representation you deserve!
13 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
STEPS IN THE HOME BUYING PROCESS 1. Meet with Lender to get pre-qualified 2. Meet with us & view homes 3. Select home 4. Write an offer & submit earnest money 5. Negotiate counter-offers 6. Obtain a home inspection 7. Negotiate repairs with seller 8. Complete loan process and order appraisal 9. Loan package submitted to underwriting 10.Loan approval 11.Title search & commitment 12.Settlement Statement received 13.Final walk-through 14.Closing 15.Move in! 14 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
PREPARING FOR A LOAN Use this checklist to make sure you have everything you need before you begin your loan application. Having all necessary documentation up front saves time so your loan can close smoothly and quickly. 1. 2 years of tax returns 2. 2 years of W-2s 3. If self employed, 1099s and copy of business license 4. Most recent bank statements (all accounts and all pages) 5. Explanation (signed and dated) of any deposits over $1,000 other than normal pay into accounts 6. Most recent pay stubs (minimum of 30 days) 7. Copy of driver’s license 8. Explanation (signed and dated) of any inquiries on credit report 9. Mortgage Statement, Insurance Declaration Page, and most recent tax statement for all other properties owned 10. Divorce Decree and Separation Agreement (if applicable) 11. Copy of Earnest Money Check & Purchase Contract 10 Do’s and Don'ts of the Mortgage Process 1. Don’t apply for new credit of any kind. 2. Do keep all existing credit card accounts open. 3. Don’t MAX OUT or overcharge existing credit cards. 4. Do maintain your employment at your current job. 5. Don’t consolidate debt to one or two cards. 6. Do pay off collections, judgments, or tax liens reported within one year. 7. Don’t make any large purchases. 8. Do stay current on your existing accounts. 9. Don’t make any large deposits into any of your accounts. 10. Do call your Loan Officer. They are there to help you through this process. 15 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
VIEWING HOMES After your initial counseling session (either via e-mail, phone, or a face-to-face interview), we will have a good idea of your wants, needs, price range, and desired location and will enter your requirements in the Multiple Listing Service (MLS) computer. From the many listings in its inventory, the computer will print a list of homes tailored just for you. We will make arrangements to show you those homes that meet your criteria. As you walk through the homes, feel free to open cabinets and closets. Most often, the homeowner will be absent, but should they be present, they will understand your need to examine the home carefully. When a home appeals to you, make notes. It is easy to forget details. Often there will be information at the home and, whenever possible, we will have given you a copy of the MLS information on the home you are viewing. Many of our clients also find that a digital camera also comes in handy for remembering details or sharing with family members. Don’t be surprised if the first home you see is the perfect one for you, and don’t be discouraged if none of those you visit the first day are what you want. We are committed to finding the house that you will call home, and we will work diligently until you find it. Usually, we will be able to find the home of your dreams rather quickly from a selection of five to ten homes that best fit the desires you expressed.
During the Home Search… We will: •
Discuss the benefits and drawbacks of each home in relation to your specific needs.
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Keep you informed on a regular basis.
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Check the MLS database and with other brokers daily for new listings that meet your criteria.
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Keep you up to date on changing financial conditions that may affect the housing market.
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Be available to answer your questions or to offer assistance regarding your home purchase.
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Discuss market trends and values relative to properties that may be of interest to you.
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Show you new homes as well as pre-owned homes if you desire.
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Assist you with homes offered by the sellers’ themselves as For Sale By Owner (FSBO) listings. A homeowner who is trying to sell his home himself is usually doing so in hopes of saving the commission. Coincidentally, this is the reason a buyer wants to deal directly with a homeowner. Many times a homeowner will work with an agent, even though his home is not listed, if the agent introduces the buyer to the property. If you should see a FSBO and want the advantages of our services, please let us contact the owner and set the appointment.
As members of the MLS, we can show you any property. If you should see an ad in the newspaper or a sign in a yard, call us to find out the information you’re looking for. If you want to view the home, we’d be happy to show it to you! 16 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
THE HOME INSPECTION It’s easy to make sure that the home you’ve chosen is a smart buy. By having a home inspection, the home’s vital systems are checked. A home inspection allows you to purchase your home with confidence. We will help you schedule an inspection after you have chosen the home you like. RE/MAX Commonwealth recommends the following minimum standards when choosing an inspector: • Membership in ASHI (American Society of Home Inspectors) and adherence to its Standards of Practice and Code of Ethics. • Errors & Omissions Insurance • Written report at the time of inspection.
Your inspection report should include the following: • • • • • • • • • • • • • • •
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Foundations, basements and structures. Basement floor and walls, proper drainage and ventilation, evidence of water seepage. Exterior siding, windows, and doors. Exterior walls, windows, and doors; porches, decks and balconies; garage. Roof. Roof type and material and condition of gutters and downspouts. Interior plumbing system. Hot-and-cold water system, the waste system and sewage disposal, water pressure and flow, and hot-water equipment. Electrical system. Type of service, the number of circuits, type of protection, outlet grounding and the load balance. Central heating system. Energy source, type of cooling equipment, capacity, and distribution. Interior walls, ceilings, floors, windows, and doors. Stairways, cabinets, and countertops. Attic. Structural, insulation, and ventilation information. Fireplace. Notes about the chimney, damper, and masonry. Garage. Doors, walls, floor, opener. Appliances. Includes a wide range of built-in and other home appliances, smoke detectors, and television/cable hookups. Lot and landscaping. Ground slope away from foundation, condition of walks, steps, and driveway. 17 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
UNDERSTANDING TITLE INSURANCE What Is Title Insurance? A Title Insurance Policy is a guarantee by a title company that a thorough investigation of the title to the property has been conducted and that you have been notified of any outstanding claims to the property. The title insurance company reports any defects in the title in the form of a Title Commitment so that these matters can be corrected. It is important that you know of all claims on the property and have them resolved and declared removed prior to you taking title to the property. The Title Commitment will carefully detail what items of encumbrance are not covered by the policy. You can either get these items resolved or bow out of the transaction. Title insurance covers matters that occurred before the policy’s effective date but were discovered later. Your policy will detail what is covered, what is not covered, and the effective date. Title insurance is issued by the title company when they are certain the property is free from all liens, encumbrances, interests, etc., and the insurance guarantees such. This is so the title can be legally transferred to the buyer to be used as security for the lender’s funds. This is why title insurance is required by the lender. Your lender has an interest in knowing that you and the lender are the only parties with claims to the property. The title insurance company thoroughly searches the public records to uncover any unpaid taxes, mortgages, judgments against previous owners, easements, and other court actions or recorded documents that can affect title to the real estate. The insurance also provides protection against any defect in the public record such as forgery, similar names, error in the records, etc., and protest against any undiscovered or unrecorded claims that may arise in the future. When title insurance is issued, the title-insurance company accepts the responsibility for any and all claims on the property prior to your purchase if they do not find the claim or call it to your attention prior to your purchase of the property. That responsibility includes defending your title in court, if necessary (at their expense), or bearing the cost of settling the claim (if it proves valid) in order to perfect your title and keep you in possession of your property. Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments required to keep your Owner’s Title Policy in force. Title insurance protects you twice—it notifies you of claims against the property and insures you against any future claims on hidden items.
18 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
WHY TITLE INSURANCE IS SO IMPORTANT To understand why a title search is so important, you must understand the nature of real estate. Real estate has always been considered a person’s most valuable possession. It is so basic a form of wealth that many special laws have been enacted to protect ownership of land and the buildings that stand on the land. The owner who is selling the property has extremely strong rights, as do his/her family and heirs. Also, there may be others who have “rights” in the property you are going to buy. These may be governmental bodies, contractors, or any other individuals who have perfectly proper unpaid claims against the property. Unscrupulous owners may have taken out a second mortgage on the home prior to closing. Anyone who has such a claim in the property you are buying is, in a sense, a part-owner. The property may be sold to you without the knowledge of other parties who have claims against the property. Without a title check conducted by the title-insurance company, you know nothing about such claims at the time you buy. All such claims remain attached to the real estate you are purchasing and not to the previous owners. The title company will notify you of all liens, encumbrances, and interests in the property so that these can be resolved by the current owners prior to the sale. Proof of a “good” title—a title free of any liens, encumbrances, or interests—is important because otherwise you are liable for the claims. Title-insurance policies are standard. Owner’s policies usually do not cover one or more of the following matters (often referred to as “Standard Exceptions”), unless an additional premium is paid and/or extra investigative work or a survey is done and the necessary evidence is furnished to the title company. When the evidence is furnished and the insurance coverage is given, this is frequently referred to as “Extended Coverage.” The Standard Exceptions are: •
Claims of people who turn out to be living in the house (such as prior owner’s tenants or someone living without your knowledge on your property) if their presence there isn’t a matter of public record.
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Boundary-line disputes.
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Easements or claims of easements not shown by public records.
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Unrecorded mechanic’s liens (claims against the property by unpaid home-improvement contractors).
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Taxes or special assessments left off the public record.
Other important exclusions from coverage include zoning, environmental-protection laws, matters arising after the effective date of the policy, and matters created, suffered, or assumed by the insured. 19 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
WHO PAYS FOR WHAT AT CLOSING The seller can normally be expected to pay for the following: • • • • •
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Real estate commission. Owner’s title-insurance premiums. Half of the Real Estate Closing Fee (except for VA loans, where the seller pays 100%). Payoff of all loans in seller’s name. Fees, re-conveyance fees, and prepayment penalties. Home warranty according to the contract, if any. Any judgments, tax liens, etc., against the seller. Recording fees to clear all documents of record against the seller. Tax pro-ration. This is for any unpaid taxes at the time of transfer of title. Any unpaid homeowner-association dues. Any assessments according to the contract. Any and all delinquent taxes per the contract. New approval of well, septic, and as-built survey (if required). Re-inspection fee with appraiser or home inspector (as negotiated in contract). Half of the document-preparation fee (unless VA or FHA loan; then the seller pays 100%).
The buyer can normally be expected to pay for the following: • • • • • • • • •
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Lender’s title-policy premium. Half of the Real Estate Closing Fee (unless you are a veteran and getting a VA loan; then the seller pays 100%). Recording charges for all documents in buyers’ names. All new loan charges (except those required of the seller by the lender). Interest on a new loan from date of funding to 30 days prior to first payment date. Assumption/change-of-records fees for takeover of existing loan. Appraisal. Improvement Location Certificate (if required or at buyer’s discretion). Hazard insurance premium for the first year. Home inspection. Reserve account for taxes and insurance.
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Both FHA and VA require that the seller must pay certain costs including: document preparation, tax service, warehousing, and loan-review fee (if any). • VA: 100% of Real Estate Closing Fee. Your lender will provide you with a settlement statement that shows exactly what you will owe 1-2 days prior to closing. 20 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
MOVING TIMELINE AND CHECKLIST One month before your move: •
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Arrange for moving your furniture and personal belongings either by hiring a moving company or renting a truck. Get estimates from several moving companies or truck-rental companies and be sure to obtain a hand truck (appliance dolly) if you’re moving yourself. Gather moving supplies: boxes, tape, rope, and anything else you might need Plan your travel itinerary and make transportation and lodging reservations in advance if you are driving to your new home. (Leave a copy with a friend or relative.) Some moving expenses are tax deductible, so you will want to save your moving-expense receipts for tax deductions, including meals, lodging and gasoline or mileage. Record expenses incurred during your house -hunting trips. Develop a plan for packing, such as packing last the things you use the most. Notify others of your new address: post office, charge accounts, subscriptions, relatives and friends, national and alumni organizations, church, mail order clubs (books, videos, catalogues), firms with which you have time payments, and your past employer to make sure that you receive W-2 forms and retirement -account information. Save your old address labels to speed up filling out change-of-address forms for your new address. Notify federal and state taxing authorities or any governmental agency necessary.
Two weeks before your move: • • • • •
Notify and get refunds from your present utilities: gas, electric, water, cable, and phone. Arrange for services at your new address. Notify phone company and arrange for service at your new address. Have your car serviced if you are driving a long distance to your new home. Recruit people to help you on moving day. Arrange for someone to take care of your pets and children during the move. Confirm moving company or rental-truck arrangements.
One day before your move: • •
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Keep moving materials separate so they don’t get packed until you are finished. Pick up rental truck if you are moving yourself. Fill up your car with gas and check oil and tires.
21 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
REAL ESTATE TERMINOLOGY 442 Final building inspection form and is common with a new construction home but a 442 can be requested if a home has had work done to it. 1031 Exchange If there is money made from the sale of a property then the taxes owed on that money made can be deferred by the IRS till a future date. Keeps more money in your pocket in the short term. Addendum Additional documents that go into a real estate contract. Appraisal The method in which a loan officer will determine if the property is worth as much (or as little) as the buyer is willing to pay for it. Closing The date in which the buyer’s purchase will record at the County and become their property. Closing Costs The entire package of miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. These costs include the brokerage commission, mortgage-related fees, escrow or attorney's settlement charges, transfer taxes, recording fees, title insurance and so on. Closing costs are generally paid through escrow. CMA Comparative market analysis or competitive market analysis. A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market, but not sold within the listing period. Commission The real estate agents paycheck. We don’t sell we don’t eat. Real estate brokers are a 100% commission based and receive no salary, health care, and/or insurance. Contingency A condition that has to be fulfilled in order for another event to happen. Example: The successful purchase of home B is contingent on the successful sale of home A. Easement Is a written document (though it can be verbal but that is hard to uphold) that is recorded at the County giving a party the right to use someone else property for a specific use. Escrow Very simply defined, an escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of a particular condition or event. Financing The vehicle in which most people use to pay for a home. FHA The Federal Housing Administration provides mortgage insurance on FHA approved loans –typically the home has to meet certain standards as well as requires a minimum down payment from the borrower. 22 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
REAL ESTATE TERMINOLOGY Fixture Anything of value that is permanently attached to or a part of real property. (Real estate is legally called "real property," while movables are called "personal property.") Examples of fixtures include installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are a frequent subject of buyer and seller disputes. When in doubt, get it in writing. Foreclosure The legal (sometimes not so legal –ROBO signers) process by which a lending institution takes over possession of a property due to the homeowner not paying their house payments. Grantor Tax The Commonwealth of Virginia taxes the sale of real estate based on the selling price, any outstanding liens, and any other debts securing the original purchase. HUD Homes Homes owned and sold by U.S. Department of Housing and Urban Development, a government agency. IDX An acronym for Internet Data Exchange and is refers to the data feed that is downloaded from an MLS. IDX’s also make it possible for the public to search homes using a real estate broker’s website. MLS Stands for Multiple Listing Service and serve as the central hubs for brokers to share their real estate listings with cooperating brokers. Also, MLS’s are the source where real estate broker’s download home listings via an IDX feed to display on public websites. Pre-Qualified A process that allows the prospective buyer to submit a loan application to a lender before the home buying process. Pre-Approved Where the buyer has funding secured by a lender to purchase a home. Purchase and Sale The paperwork, contract, that outlines the details to a home purchase. REO An acronym for the term Real Estate Owned in which bank (or other financial institutions) give to their properties they own. Short Sale When a home owner is attempting to sell his/her home for less than is owed against it. Short sales have to be approved by the lienholder in order to be executed. VA The Department of Veteran Affairs and is typically associated with military service members using their eligibility to purchase a home using VA financing. Zero Down Used in terms of a financing method meaning there is no out of pocket expense for the borrower (buyer). Common zero down programs are USDA and House Key. 23 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com
RE/MAX COMMONWEALTH 7201 GLEN FOREST DR. STE 104 RICHMOND, VA 23226 804.288.5000 All offices independently owned and operated. If your property is currently listed for sale, this is not intended as a solicitation. Licensed in the Commonwealth of Virginia. ©2021 RE/MAX Commonwealth.
24 The Medlin Team // 804.564.1092 // RemaxRyanMedlin@gmail.com // www.TheMedlinTeam.com