This third and final installment concerning Information for First Time Home Buyers has been written and rewritten more times than I can count. (Sorry for the delay!) Grouping together concerns that home buyers have, no matter what kind of market we are in, has produced first, second, sixth, etc. drafts of this blog to turn out “War and Peace”-like in length. There is just such a complex (some parts significant and others not so much) web of concerns that home buyers have, it has been quite the task for me to address these things to help give as much comfort and confidence to you in your decision to buy a home.
In looking at these marathon drafts, I started to notice a trend. All of these concerns boiled down to three topics of overview, so to speak. The three topics I have discovered are;
- “How Much Is It Going To Cost Me?”
- “What’s Going To Happen To Me?”
- “How Can You Make It Better For Me?”
I would like to briefly address each of these questions and hopefully provide a concise blog to help calm the waters of an often turbulent decision and process. My goal is that by the end of this blog, the sun will shine brighter and you will have a stronger sense of confidence in your home buying decisions.
”How Much Is It Going To Cost Me?”
Much of the decisions we make in life, real estate and otherwise, boil down to money. There is a misconception out there that keeps potential home buyers from turning into real home buyers because of a fear of how much buying a home costs. I have already discussed some great financing options in the second part of this home buying series.. The following covers some other costs potential home buyers need to know about.
There are a few costs that may be out of pocket at first, such as an Earnest Money Deposit as well as some other costs once you get an accepted offer, such as; home inspection fees, appraisal fees and home owners association document transfer fees. These costs will vary greatly depending on the size and the price of the home you are looking to purchase. An Earnest Money Deposit is a deposit that will be placed with an escrow company to show that you have a vested interest in the home you would like to buy. For homes $500,000 and below, you can generally plan on this Earnest Money Deposit to run you somewhere between $1,000 -$5,000. This amount is ALWAYS negotiable and will vary from house to house, the $1,000-$5,000 figure is merely a ballpark figure. Depending how we structure your offer and the loan you are looking to get, some if not all of this money can be reimbursed to you at the successful Close of Escrow (when the keys are in your hands!).
As far as the other fees such as, home inspections, appraisals, and HOA Document Transfer Fees, generally you can see these costs range from $800-$1000 in total. Some of these fees may not apply or you may even be exempt from them. Just like with the Earnest Money Deposit, if we can structure the deal properly, you may get some, if not all of this money back after the successful Close of Escrow.
Another question I get asked quite often concerns how much my services to you as your REALTOR® cost. I’ve got good news on this one. My services to home buyers are absolutely free! Payment from my services come as co-operative agreements with all of the listing brokers and new home construction builders throughout the valley.
It is my duty, lawful obligation, and honor as a Licensed Real Estate Professional and a REALTOR® to always work in your best interests. All of the “conflict of interest” stories you may hear about professional buyer representation does not apply when I am your representative! My mission is to earn your respect, trust and business through unparalleled service. Real Estate is my career, and it is a career that is built on referrals from satisfied clients. I’m not here for the “quick kill.” If I have done my job right, you will not only want to use my services again for every real estate transaction you will ever have, but you will also want to tell all of your friends and family about me. That is how success happens in my business, not by pulling the fleece over clients’ eyes.
”What’s Going To Happen To Me?”
The home buying process obviously begins with you thinking about home ownership. If you are going to need a loan to help pay for your new home, it is important to be in contact with a lender at the beginning of this process. Your first meeting with the lender should be to not only “pre-qualify” you for a certain loan amount, but to also discuss your desires as far as a monthly mortgage payment or overall loan amount that you would want to have on your new home. If you are not currently working with a lender, contact me and I can introduce you to some of the best and most honest people in the industry. Once we get a good idea of where you want to be financially, I can go hunting among the tens of thousands of available homes and present to you only the best homes available that meet your wants and needs, while still matching your budget.
Once we find you that perfect home that you wish to put an offer on and it gets accepted, there is a period of time, usually lasting 10 days after the offer is fully accepted, called a Due Diligence period. During this Due Diligence period, we will order you your home inspection and we will do all of the necessary homework to make sure that this is the home you wish to buy. If things do not feel right during this period of time, you may retract your offer with a full refund of the Earnest Money Deposit you put down.
After the Due Diligence period, there is a lot of waiting usually that takes place. It is during this time that the lender gets their documents together to fully approve you for your loan, as well as for the title and escrow company to make sure the transfer of property is going to be all on the up and up. Generally the process takes 30-45 days from accepted offer to keys in your hand for Resale and Bank Owned (REO) properties. My brokerage, Prudential Americana Group, REALTORS® has a great flyer about the general timeline of events that I have posted on my website at http://www.PrimeRealEstateLasVegas.com. Just click on FAQ’s at the top.
”How Can You Make It Better For Me?”
As I’ve mentioned earlier, it is not only my duty and lawful obligation, but it is also my honor to always work in your best interests. I am here to assist you in anyway that I can, no matter where you are in your home buying decision. If you just have questions about the Las Vegas / Henderson real estate market in general, or if you are ready to move in to your new home tomorrow, I am here to help you.
After having a discussion about your desires towards your new home, I will search through the tens of thousands of homes available, and only present to you the very best that the market has to offer. I will personally preview all potential properties before bringing you to them. This saves you time and energy and ensures you are only seeing the best the market has to offer.
When we find your dream home, I will help skillfully negotiate the best price, terms and conditions for you. I will use all of the tools available to me as a Licensed Real Estate Professional and as a REALTOR® to ensure the terms of the contract are favorable to you.
Another one of my goals is that you understand what is happening, when it is happening throughout this process. As they say, knowledge is power, and the more you know, the more smoothly this process goes. I take a great deal of pride in educating my clients about all aspects of their home purchase, so that you not only know exactly what we are doing, but that you can rest assured that the right decisions are being made.
Much of my job is also serving as a communications hub between all parties involved in the transaction. I want to make sure everyone dealing with your new home is on the same page. I will be diligent in communicating with the lender, title and escrow company, home inspector, listing agent and all other parties that have a say in what is happening. Most importantly, I will consistently update you with all of the information I have.
I hope that this abbreviated version (yeah…believe it or not) has helped you understand what I do to make this process as enjoyable and rewarding as it can be, along with setting the record straight on some particular items that may not have been clear about the overall process. Just in case I’ve added more confusion to the pot, or if you just have any questions, comments or concerns at all, please call me at 702-370-3521 or e-mail me at Mike@PrimeRealEstateLasVegas.com.
Thank you for reading this three part series for Information for First Time Home Buyers. I will now be blogging much more frequently about everything from market updates to specific homes that are incredible steals as well as valuable tips for home buyers and sellers.
Thanks again for reading….stay tuned!
All the best,
Mike Dobranski, REALTOR®
Prudential Americana Group, REALTORS®
