A GUIDE TO

BUYING YOUR HOME

COMPLIMENTS OF: JAMES KIM REAL ESTATE PROFESSIONALS (DRE# 01474579)

 

  

BUYER COMMITMENT LETTER

 

As your agent, my expectation is to sell you a home.

 

As your agent, my commitment is:  

  • I will consult with you and listen very carefully to everything you say.

  • I will ask questions until I am certain that I am clear about your needs.

  • I will be absolutely truthful with you at all times.

  • I will always put your best interests ahead of the deal.

  • I will do the right thing in all situations.

  • I will do my best to answer your phone call immediately or will call you back within 90 minutes.

 

As your agent, my obligations to you are:

  • I will locate properties that meet your specified criteria and provide you with all data on those homes.

  • I will present offers and counteroffers authorized by you, and assist you in negotiating for acceptance.

  • I will assist you with the financing process, including obtaining loan pre-approval.

  • I will order reports and schedule meetings and appointments with inspectors and vendors.

  • I will deliver and explain to you all disclosures, materials and information.

  • I will facilitate the escrow process, including assisting you in negotiating with the seller.

 

As we work as a team, your obligations to me are:

  • You will return calls/emails, view properties in a timely manner and provide detailed feedback.

  • You will obtain a pre-approval letter from a lender before we look at homes so that you will be in a position to write an offer should we find your desired home immediately.

  • You will not work with any other agents to write an offer on your behalf on any property.

  • You will not go into any new home construction without me on 1st visit and you will not call a “for sale by

owner.”

 

The compensation/fee/commission you pay to me is:

  • NOTHING because the seller pays the commission. You are receiving the services, knowledge, experience, and protection from a licensed broker for FREE. My only request is your commitment to work exclusively with me.

 

I understand that I am making a commitment to work exclusively with James Kim Real Estate Professionals.  If at any point, I become dissatisfied with James’ services, I will provide written notice and this agreement will be terminated immediately.  

 

_____________________________________                  

Buyer’s Name

                         

_____________________________________                  

Buyer’s Signature                           Date

_____________________________________                  

James Kim Real Estate Professionals     Date

 

 

 

 

It’s All About You

My real estate business has been built around one guiding principle: It’s all about you.

  • Your needs

  • Your dreams

  • Your concerns

  • Your questions

  • Your finances

  • Your time

  • Your life

 

I will work with you to understand your unique lifestyle, needs, and wishes because buying a home is more than a certain number of bedrooms or a particular ZIP code. It’s about your life, and it’s important to me.

My focus is on your complete satisfaction. In fact, I work to get the job done so well, you will want to tell your friends and associates about it. Maybe that’s why so much of my business comes from repeat customers and referrals. Good service speaks for itself. I’m looking forward to the opportunity to earn your referrals too!

It’s all about you!

 

 

BUYER CONSULTATION

YOUR TOP 5

The five most important criteria for my new home are:

WANTS

1.  ­­___________________________________________

2.  ___________________________________________

3.  ___________________________________________

4.  ___________________________________________

5.  ___________________________________________

 

NEEDS

1.  ___________________________________________

2.  ___________________________________________

3.  ___________________________________________

4.  ___________________________________________

5.  ___________________________________________

 

 

6 Steps to Home-Buying

 

1. Choose a REALTOR®

Choose the best real estate agent to represent you in finding and purchasing your dream home and sign a Buyer Agency Agreement to work together. It is important to trust your agent, as you will be spending a lot of time together and your agent will help you with one of the biggest financial commitments you will make.

 

2. Obtain Financial Pre-Approval

Get pre-approved for a loan before you find the home you want to buy. Benefits include:

You know your price range, closing costs, and monthly payments up front.

You only look at homes within your price range.

Your negotiating position with the seller is stronger.

Closing on your new home can happen more quickly.

3. View Homes and Find “The One!”

After a thorough understanding of your new home needs, you receive a list of homes that meet most or all of your requirements, and we schedule time to visit them. I will also help you find homes through:

Online with real estate search sites including my Keller Williams mobile search app – we will make appointments to visit them.

For Sale or For Sale by Owner (FSBO) signs as you drive through neighborhoods – we will make appointments to visit them.

Open Houses – accompanied by your real estate representative.

New home developments – accompanied by your real estate representative.

4. Make Your Offer

Once you have found your dream home, I will research market data on the home to help you determine what to offer. We will then present a written offer to the seller’s agent. There may be some negotiation required and the seller may either accept, reject, or counter your offer. When the seller accepts the offer, it becomes a legal contract.

5. Get Inspection and Negotiate Repairs

You will hire a professional home inspector to conduct a thorough inspection of the property and we will negotiate with the seller to complete any necessary repairs.

6. Final Review of Contract and Close!

The closing is the formal process of signing papers, paying fees and closing costs, and receiving the keys to your new home!

 

 

Funding Your Home Purchase

Three Factors Determining How Much Can You Afford

1.  Qualification for the Mortgage

Lenders may require that your monthly payments range between 28 to 44% of your monthly income. The percentage will depend on the borrower’s credit rating. Your monthly mortgage payment to the lender will consist of:

Principal on the loan

Interest on the loan

Property taxes

Homeowner’s insurance

2.  Down Payment

Most home loans today require an upfront or down payment, between 3.5 to 10%. If you are able to pay more upfront, you may be eligible for lower interest rate loans, and shorter loan periods.

3.  Closing Costs

Additional fees and costs associated with loan processing and closing are required to be paid at the final closing, unless you are able to include them in your financing. Typically, closing costs amount to between 2 – 5% of the purchase price (not the loan amount.)

 

Process of Funding

1. Financial Pre-Approval

  • Application and interview with a bank or other mortgage loan company

  • Buyer provides pertinent documentation including verification of employment

  • Credit report is requested

  • Appraisal scheduled for current home owned, if any

 

2. Underwriting

  • Loan package is submitted to underwriter for approval

 

3. Loan approval

  • Parties are notified of approval

  • Loan documents are completed and sent to title

 

4. Title company

  • Title exam, insurance and title survey conducted

  • Borrowers come in for final signatures

 

5. Funding

  • Lender reviews the loan package

  • Funds are transferred by wire

 

 

Making an Offer

 

Once you have found the property you want, we will write a purchase agreement. While much of the agreement is standard, there are a few areas that we can negotiate:

The Price

What you offer on a property depends on a number of factors including its condition, length of time on the market, buyer activity, and the urgency of the seller. While some buyers want to make a low offer just to see if the seller accepts, this often isn’t a smart choice, because the seller may be insulted and decide not to negotiate at all.

The Move-in Date

If you can be flexible on the possession date, the seller may be more apt to choose your offer over others.

Additional Property

Often, the seller plans on leaving major appliances in the home; however, which items stay or go is often a matter of negotiation.

We will present the offer to the listing agent and/or seller. The seller will then do one of the following:

  • Accept the offer

  • Reject the offer

  • Counter the offer with changes

 

By far the most common is the counteroffer. In these cases, my experience and negotiating skills become powerful in representing your best interests.

When a counteroffer is presented, you and I will work together to review each specific area of it, making sure that we move forward with your goals in mind and ensuring that we negotiate the best possible price and terms on your behalf.

Note: Earnest money may be need at the time of offer. This is typically 1% -2%of the offer price. This check is made to the Title Company and will ONLY be deposited if the offer is accepted. This amount will be applied to the down payment.

 

Closing 101

Prepare for It

Closing day marks the end of your home-buying process and the beginning of your new life! To make sure your closing goes smoothly, you should bring the following:

  • A certified check for closing costs and down payment. Make the check payable to yourself; you will then endorse it to the title company at closing.

  • An insurance binder and paid receipt

  • Photo IDs

  • Social Security numbers

  • Addresses for the past 10 years

 

Own It

Transfer of title moves ownership of the property from the seller to you. The two events that make this happen are:

1.     Delivery of the buyer’s funds

This is the check or wire funds provided by your lender in the amount of the loan.

2.     Delivery of the deed

A deed is the document that transfers ownership of real estate. The deed names the seller and buyer, gives a legal description of the property, and contains the notarized signatures of the seller and witnesses.

At the end of closing, the deed will be taken and recorded at the county clerk’s office. It will be sent to you after processing.

 

Frequently Asked Questions

 

How will you tell me about the newest homes available?

The Multiple Listing Service Website provides up-to-date information for every home on the market. I constantly check the New on Market list so I can be on the lookout for my clients. I will get you this information right away, the way that is most convenient for you: by phone, email, text and/or my IDX instant notification system.

Will you inform me of homes from all real estate companies or only Keller Williams Realty?

I will keep you informed of all homes. I want to help you find your dream home, which means I need to stay on top of every home that’s available on the market.

Can you help me find new construction homes?

Yes, I can work with most builders and get you the information you need to make a decision. On your visits with the builder, I will accompany you. By using my services with a new construction home purchase, you will receive the services I offer, as well as those provided by the builder, at no additional cost.

How does for sale by owner (FSBO) work?

Homeowners trying to sell their home without agent representation are usually doing so in the hopes of saving the listing agent commission, but most understand they will pay for buyer agent commission. If you see a FSBO and want the advantages of my services, let me contact the owner for you and make an appointment. Most times the homeowner will work with an agent even though their home is not listed, since the agent is introducing a potential buyer to their property.

Can we go back through our property again once an offer is made but before possession?

Usually we can notify the seller and schedule a convenient time to visit the property again. Immediately before the closing, we will schedule a final walk-through and inspection of your new home.

Once my offer is accepted, what should I do?

Celebrate and focus on moving into your new home! You will want to schedule your move, pack items, and notify businesses of your address change. I will provide you with a moving checklist to help you remember all the details. I will also give you a good faith estimate and HUD statement, which will indicate the amount you will need to bring to closing

 

What’s Ahead

Let’s look for a new home.

The information we just discussed about your wants, needs, and desires will all be taken into account when I choose homes for you to view.

In some cases, my clients find their dream home on the first day. In other cases, it takes more time to find the right home. Rest assured, there is a home out there just right for you. We just have to find it.

To assist you in the home search journey, I will organize a list of homes with the following information for each:

  • Photos of the home

  • The home address

  • The current asking price

  • The square footage and property taxes

  • The number of bedrooms and baths

  • The age and lot size

  • Unique features and comments

 

Once we narrow down the list of properties that are of interest, I will:

  • Provide you with more detailed information about the home

  • Review the county tax records for tax liens, etc.

  • Tour the home with you

  • Determine how the asking price compares with other homes in the area

  • Answer any and all questions you may have