1. Imagining Your New Home
It is important that all parties involved in the purchase of a new home are like-minded, before you start looking. For you, this may mean getting the approval of parents who are helping financially, or finding compromises with your partner.
Firstly, you should discuss where your new home will be located. Commuting time to work, the type of neighborhood, and the quality of schools are all considerations.
Next, what qualities or amenities do you want in a home? Is someone passionate about an attached garage, or a finished basement? It is often a good idea to make two lists; one with what you need in a home, and the other with “nice-to-haves” that could be compromised for a home that meets all of your “need” factors.
At Manter Realty, our experienced real estate consultants work with you in achieving a clear picture of your new home, by raising questions that help you to focus your energy where it really counts.
Moving Up, or “Right-Sizing?”
Unless you qualify for a “bridge loan,” the purchase of your new home will be dependent upon the sale of your current one. You may be wondering, “Do I sell my present home first, or do I secure a new home before I sell?”
Generally, if you make an offer on a property contingent upon the sale of your home, expect the offer to come back with a “kick-out clause.” This contractual clause states that, if the seller receives another acceptable offer from a buyer with nothing to sell, you would have a specific amount of time (usually 48-72 hours) to secure a contract on your home, or obtain financing, such as a bridge loan. Otherwise, your purchase contract becomes voidable. While your deposit money will be returned, home inspection and bank appraisal costs are not reimbursed.
Either way, there are various issues to consider. Our experience has been that buyer prospects for your home are perhaps more willing to wait for you to find suitable housing, than is the seller of a home that is in demand.
2. Choosing a Real Estate Professional
While all real estate agents are licensed by the State of New Hampshire and subject to the regulations of the NH Real Estate Commission, not all real estate agents are Realtors®.
Realtors®: A Higher Standard
Realtors® are members of the National Association of Realtors® and pledge to a higher standard of ethical business practices. All licensed agents at Manter Realty are proud to be Realtors® and active members of the Concord Board.
How to Vet a Buyer Agent
Are there letters after their name? To sharpen their skills, agents participate in education programs to earn accreditations and designations. Look for CBR (Certified Buyer Representative) or ABR (Accredited Buyer Representative).
How much of their business is repeat or referral? The testimonials of repeat and referred customers are the best measure of a company’s commitment to service.
How do they get paid? Unless it’s a For Sale By Owner (FSBO), agents are paid by the seller. The listing agent publishes a cooperating (co-broke) fee to compensate the buyer’s agent. Sometimes this fee may not cover the buyer agent’s minimum. Ask how this is handled.
What services do they offer? Services like auto emails for new listings will give you an edge when competing with other buyers.
Who does the real estate agent work for?
If their sign is on the lawn, they clearly work for the seller. But what if you call a different broker to bring you to view that same home? Do they work for you? Unless you have a Buyer Agency Agreement, assume that all agents work for the seller. Ask to see a Disclosure of Agency Relationship in Real Estate form. This document spells out the duties and restrictions of agents when dealing with the consumer. The listing agent is required by law to disclose any and all information about the property, but not the seller’s personal information or motivation. On the other hand, the fiduciary duty of the listing agent is to report any and all information gained about prospective buyers to the seller. So, keep the conversation restricted to the property. You wouldn’t want anything you say to compromise your negotiating position. Ask Manter Realty about our Buyer Brokerage services at little or no cost to you.
3. Viewing a Property
Use this time to make detailed observations of the house, inside and out. Does it meet all of your needs? Will you need to make any updates or alterations? Feel free to ask questions, and take your time.
Once at the property, wait in your car until your Realtor® arrives. If you must talk with the Seller’s agent, keep the discussion relative to the property…you don’t want anything you say to compromise your negotiating position.
The Listing Packet provided by the seller’s agent usually contains the plot plan or legal description, property disclosure and listing sheet. The property disclosure is completed by the seller to the best of his/her knowledge and recollection. This report often gives a history and the condition of the mechanical systems of the house…review it carefully.
While walking through the house, look around, up and down. Try to see beyond the seller’s personal belongings. Keep in mind your needs and wants. Ask questions and revisit rooms if necessary…no need to rush.
4. Making an Offer
An offer is about more than just price. Time frame, inspections and financing are also of interest to a seller. Remember that you may be competing with other buyers, not the seller, and during this time the seller may consider other offers.
Once an offer is presented, the seller may make changes to the offer right on the contract. This is a counter offer. Changes are initialed, dated and returned to the buyer for consideration. The buyer would then either agree, or make changes of his or her own by initialing and dating.
A counter offer is an entirely new offer. Any contract change, no matter how minor, voids the preceding version and neither party is under a legal obligation to respond to the new offer. A contract is not binding until it is signed and ALL changes are initialed by the parties. For this reason, if you are serious about a property, try to make your offer one that will not come back with changes. Sadly, some have lost out on their dream home because of negotiations over a minor issue like a fixture or appliance!
5. Inspections & Commitment
Congrats, your offer is accepted! Now, make an appointment to meet with your lender, and schedule any home inspections that are specified in the contract. The deadline to make formal application with your lender is 5-7 calendar days from a fully signed contract.
The Inspection
The typical inspection timeframe after a fully executed (signed) contract is between 7-14 days. Not only are you to complete the inspection during that time, but you are also expected to respond in writing with any issues that you wish addressed by the seller. Remember that the results of water and radon tests may take a few days or longer. Lack of compliance with contractual deadlines could void the contract or cancel your right to negotiate home inspection issues.
Commitment Date
The commitment date is when the lender approves your loan by way of a commitment letter. You have little control over this date; however, promptly providing your lender with any information requested helps to ensure a timely approval.
