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Assembling Your Buying Team™
Buyer's Network pioneered the team buying concept, receiving recognition and wonderful
press reviews by news sources including The Boston Globe, New England Cable News, Banker and Tradesman, and more. Our exclusive
"Buying Team™" concept provides you with professional service and advice in all aspects of the real estate transaction. View the links below as a guide to developing your Buying Team™ with the assistance of Buyer's Network.
Locating and Negotiating Real Estate
Buyer's Network agents are committed to making the process of buying as stress free and enjoyable as possible. In order to assist you in the process, we have developed a unique and precedent setting concept of home buying called the Buying Team
strategy.
By utilizing a team approach, you'll find yourself well prepared when the time comes to make an offer to purchase your new home. In cooperation with your exclusive buyer agent, we suggest you assemble your Buying Team™ within the first two weeks of house hunting. Your agent will provide you with a list of qualified names of local
recommended advisors for you to consider and interview as part of your
team.
Remember, your Buyer's Network agent is like the quarterback for your Buying Team™. Your agent is always there to assist you assembling and coordinating your team activities, as well as answer your questions during each stage of the buying
process.
We believe that locating the right home can be easy. Most Buyer's are under the misconception that the more properties they see, the better educated they are about the market. A better plan is to work with your Buyer’s Network agent to view only properties meeting your criteria. The great majority of all listings can be eliminated by you and your agent by carefully screening the current inventory of available properties before you ever leave home or get out of the car. This is sure to make your viewings more
productive.
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Your Buyer's Network agent will assist you in locating houses meeting your specifications by using our computerized Multiple Listing System (MLS) system which connects all local Realtor® offices. The MLS advertises all newly listed homes by any Realtor®, to all MLS participants and their buyers. Through daily updates, descriptions of houses that meet your needs will be faxed or e-mailed to you instantly for your consideration. This saves you tremendous time, and may allow you to be one of the first buyers viewing newly listed
properties.
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You should casually drive by the properties that you and your agent believe are good prospects. There is no need to make buying real estate a regimented schedule. Dedicate some convenient time in your schedule to view the neighborhoods and curb appeal of properties you may be interested in viewing. You'll be surprised how many prospects can simply be ruled out due to poor location and lack of exterior appeal. When you find a property that you feel is a strong possibility, contact your Buyer's Network agent immediately to make arrangements for a formal viewing. Usually twenty-four hour advance notice is a necessary courtesy, especially if the owners are still living on the premises. Your agent will then confirm the showing and meet you at the
property.
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Remember, you are a part of a Buying Team™. You may find a property in the newspaper, through a personal referral, or by chance. If you find a property not brought to your attention by your agent, contact your agent to research the property, and make contact with the seller or seller's agent to arrange a
viewing.
With a Buyer's Network agent, buying a house moves at a comfortable pace set by you. There is no reason that house hunting needs to be a stressful and tiring process. Buyer's Network will make buying a comfortable and enjoyable process to find your family's new
home.
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Mortgage Financing
If you're like most buyers, you're going to require a loan in order to make your purchase. We suggest that you interview and apply for a loan "pre-approval" with a reputable lender. By being approved by a lender, you have a better chance of negotiating a great interest rate, and your financial strength is able to be used as a negotiation bargaining tool by your Buyer's Network
agent. Some things to
consider:
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Although the lender doesn't work for you under a written contract, the lender is required to legally keep your personal and financial information confidential. You should instruct the lender to speak only with your Buyer's Network
agent and your Attorney regarding your personal and financial matters. You do not want the lender to disclose any information to the Seller, Seller's Agent, or Seller's
Attorney.
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Secure a pre-approval for the highest amount that you can afford. You then work with your Buyer's Network
agent to determine your financial comfort level. You don't need to buy at or even near the maximum pre-approval limit, but knowing that limit will help you better understand your financial
position.
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Always mention Buyer’s Network
when you contact a lender, and let the lender know which Buyer’s Network
agent you've contracted. Have the lender call your Agent with an initial pre-qualification figure followed by faxing the full written pre-approval. Remember, your Buyer's Network
agent is under contractual obligation to keep your personal and financial information confidential, and having this information is an essential part of your Agent's assistance
process.
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Give the lender a copy of your necessary personal and financial information necessary for a preapproval. Always keep your original information in a safe, convenient place in case you need it again during the buying process.
Importantly, your pre-approval should include the lender verifying your income, credit, employment, and other factors that determine your ability to qualify for a mortgage loan. We recommend that your pre-approval be subject to only a signed Purchase and Sale agreement and the lender’s
appraisal.
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There are basically three types of lenders, each qualified to provide you with funds, but providing distinctly different levels of service and flexibility. Buyer's Network
does not recommend any one type of lender over another, but does advise you to apply to the lender that you feel most comfortable with using. Consult your Buyer's Network
agent with
questions.
Bank: Usually a local savings bank that secures your loan with the institution's own
money.
Mortgage Banker:
A lender that has it's own money to secure your loan, but usually sells your mortgage to a third party investor either before or immediately after closing your loan. Many mortgage bankers will provide the service to your loan, but will not actually hold the mortgage note after closing.
Mortgage Broker:
A mortgage broker lends money from it's investors exclusively. A mortgage broker will take your mortgage application, shop your loan to a multitude of investors that offer different rates and loan programs, until finding the best loan alternative they can recommend. The loan is usually
closed with that investor at closing as part of the closing process.
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Legal Advice
You should strongly consider hiring an attorney to review the Offer to Purchase or Purchase and Sale Agreement before you sign. Although real estate agents are trained in the negotiation and purchase of real estate, most aren't trained, practicing attorneys. That's the best reason to have a trained legal professional review your purchase contract to make sure that all your legal considerations have been incorporated into the final documents.
Choose an attorney who specializes in real estate. You may choose any attorney you wish, but your attorney should incorporate real estate law as the bulk of the attorney's practice, and should be willing to meet with you to explain and if necessary, revise the Purchase and Sale Contract to protect your legal interests.
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During the negotiation of Purchase and Sale language and terms, your attorney should be available to discuss any items with the Seller's Attorney or Agent if the need arises.
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Discuss professional fees and precisely what you will be getting for your money. Ask if there will be an additional charge for negotiating the terms of the Purchase and Sale Agreement with the Seller’s Attorney (if necessary) or if the fee for reviewing and revising the Purchase and Sale Agreement covers all
negotiation.
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Many attorneys give you a choice between hourly fees or a flat rate fee for standard Purchase and Sale review. Be aware that hourly fees can quickly add up if there are any unusual circumstances with the property or sale. We recommend to negotiate a flat rate fee not to exceed a specific amount of dollars per hour unless your attorney first notifies and receives your permission to proceed.
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Home Inspector
You’ll need a home inspector after the Offer to Purchase has been accepted and signed by the Seller. Your Buyer’s Network
agent will speak with you regarding your rights to various home inspections and contingencies for those inspections which will be included as part of your Offer to Purchase. We recommend that you inquire about inspectors, fees, and types of inspections prior to an accepted Offer to Purchase. When choosing home inspectors always insist on an itemized, written report. It is important to keep in mind that a home inspection serves different
purposes:
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Home inspections allow new information to be discovered, which will enable you to decide whether or not to move ahead with the purchase.
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Home inspections provide you with a brief education on items like age and maintenance of the different systems (electrical, plumbing, heating, etc.) in the home.
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A license to
conduct home inspections is a great qualification, but not the only one to consider. Ask if the inspector is a member of the American Society of Home Inspectors or any other recognized organization that has standards of training and requirements of membership. Make sure the inspection company is insured, and inquire as to what their insurance covers in the event you need to make a claim for a poor inspection or a missed item.
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If you are applying for a government type loan such as a VA (Veterans Administration), FHA (Federal Housing Authority) or HUD (Housing and Urban Development) loan, your inspector needs to provide a pest inspection on the FHA/VA approved pest inspection form. Ask for this form specifically.
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You should consider having comprehensive inspections. A few dollars spent up front can save your thousands of dollars and headaches after your purchase. Ask the inspector to provide the following minimum types of inspections:
General Home Inspection
This inspection is an overall look at the building and its important systems such as structure, electric, plumbing, and exterior condition of a property.
Structural Inspection
A structural inspection focuses on components such as the foundation, columns, beams, joists, rafters, walls and roof.
Heating and Cooling Inspection
The best heating inspection is performed by a heating and cooling contractor who will inspect the furnace, boiler, burner, and/or air conditioning system.
Electrical Inspection
This inspection is best done by an electrician or a general home inspector specializing in understanding and reporting on the condition and safety of a property’s electrical
system.
Sewer and Waste Systems
Private Sewer, including septic and cesspool systems, require that the system passes a Title V compliance inspection. This inspection needs to be performed by a licensed Title V inspector and is usually the Seller’s
responsibility.
Domestic Water Test
This is the "potable" drinking water. A domestic water test will show if there are any dangerous chemicals, lead, or radon levels in the property’s drinking
water.
Radon Gas
Radon is a commonly found natural gas that is believed to be a carcinogen. This gas usually enters the house from cracks in the foundation or slab.
Pests including insects and other vermin
In New England, it is common to find some evidence of insect damage in older homes. Termites, carpenter ants, powder post beetles, mice, squirrels, and bats are commonly found to have visited a home during its existence. This inspection should help reveal if there is any active infestation and the extent of damage that may have been left behind from previous activity.
Chimney, Wood/Coal Stove and Fireplace
Commonly found problems may include a damaged flue or liner, need for a chimney cap, and repair to missing mortar in joints called "pointing."
Lead Paint
Federal Law requires that the Buyer have the right to inspect the property for the presence of lead paint. If you have a child under six that will be living in the home, it is your responsibility to bring the property in compliance with the federal and state lead paint laws. Ask your Buyer’s Network™ Agent for more details and for a copy of the Lead Paint Disclosure.
Mold
The release of toxins by molds in a dwelling may lead to any number
of heath hazards and affect the value of the property. Molds can
trigger asthma and allergies in sensitive individuals. A mold
inspection by a certified inspection company such as Mold Rover (www.moldrover.com)
or others with the training and expertise to discover and recommend
remediation may be an important inspection for you to consider as
part of your heath and investment in a property.
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Insurance Agent
In most cases, an insurance agent will need to provide you with an insurance binder prior to closing. You should contact a local insurance agent, price the types of insurance you desire, and have that agency contact your Buyer's Network
agent with any questions. Many insurance agencies offer home warranties. These home warranties generally cover some of the home’s systems and appliances. We recommend that you consider a home warranty if you are buying anything except new construction which usually comes with a builder's limited
warranty.
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Summary
Our Buying Team strategy allows you to move through the various stages of purchasing real estate with a sense of confidence and security. Here is a checklist of the significant stages of your home buying
process:
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Interview and hire a qualified and trained Buyer's Network Exclusive Buyer Agent.
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Obtain loan Pre-Approvals from up to three mortgage lenders.
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Secure the services of a qualified real estate attorney.
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Decide what criteria are most important in a home. (location, number of bedrooms/bathrooms etc.)
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View and evaluate properties, then decide with your Buyer's Network
agent whether or not to make an Offer to Purchase.
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You and your Buyer's Network
agent will discuss the true value of the
property, negotiation strategies, and presentation of the Offer to Purchase.
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Your Buyer's Network
agent will keep you apprised of the entire negotiation of your Offer to Purchase, allowing you to make decisions that accomplish your predetermined buying goals.
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Once an Offer is accepted, you'll have your Home Inspections of the premises.
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Your Buyer's Network
agent may renegotiate any undisclosed items found during Home Inspections.
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Your Attorney, Buyer’s Network
agent, and you will review a Purchase and Sale Agreement confirming all of the negotiated terms of purchase.
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The day you sign the Purchase and Sale Agreement, you'll need to bring a personal check for the amount of the escrow deposit agreed to on the Purchase and Sale Agreement. Ask Your Buyer's Network
agent about the escrow process and to whom you make the check payable.
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Contact your Insurance Agent to obtain an insurance binder.
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Obtain a Commitment Letter from the Lender with which you have been pre-approved.
The commitment due date is clearly defined on the Purchase and Sale Agreement.
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Check with your Lender to confirm that you
will be "Approved" for your loan prior to the mortgage commitment
date before you sign the Purchase and Sale Agreement.
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Have your Lender mail or fax a copy of your Commitment letter to your Buyer’s Network
agent once
issued.
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Your Buyer's Network
agent will schedule a final "walk through" of the premises prior to closing to ensure that the property is in the condition you expect.
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After your walk through, you’ll attend the "closing" of the
transaction.
Thank you for considering Buyer's Network to assist you in the home buying process. We look forward to dedicating our experience and resources to assist you in accomplishing your real estate
goals.
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