Customized Listing Alerts to Find Out About "Coming Soon" Homes
Monthly Preview of Newly Listed Homes with the Seller's Agents
Each Agent has a Licensed Assistant So You Can See Homes When You Need
Proprietary Home Buying Guides & Checklists for Every Step, and Homebuyer Workshops
Interactive Concierge List of 300 Local Service Providers from Lenders to Inspectors
Top Producer Ranking in the Top 1% of Local Real Estate Agents
Sign up for listing alerts to find out the moment a home within your search criteria hits the market, including "Coming Soon" homes, which don't feed over to those popular third-party websites! In the Collaboration Center portal you can manage your likes, dislikes, and maybes, so we can keep an eye on homes you may want to schedule a showing to go and see.
There are many benefits to owning a home but the top three most important tend to be tax savings, appreciation, and equity.
A tax attorney or a certified public accountant can help you determine if your home's expenses are tax deductible.
The appreciation of a home's value almost always outpaces the increases in inflation, making it a worthwhile investment.
Reduction of principal, and appreciation in value, both allow you to gain equity in your home, which can become a great savings plan, as it is something that you may be able to borrow against.
In addition, there are several programs in which you can purchase a home for little to no money down. Your real estate agent can connect you with local lenders for more information.
Your real estate agent should have a clear idea of what you are looking for in a home, and any goals you might have. During a consultation you should learn a little about them, their team, the current market trends, and the homebuying process.
Sellers sign a Listing Agreement defining the terms of their working relationship with their real estate agent. For buyers, this type of agreement is a Buyer Representation (or Buyer Brokerage) Agreement.
Let’s be honest... you can’t go to a gym without signing a contract, so for an investment like buying a home you want the duties of your real estate agent to be clearly defined.
Traditionally, real estate agents are paid at closing, and a lot has to happen before you get to that point. At Hum Real Estate, your agent and their team begin working on your home search, facilitating property showings, gathering legal disclosures, and performing in-depth property research - all before you’ve even made an offer.
After the agent drafts and negotiates the offer, and you are under contract, the contingency period has begun, at which point several things need to happen under strict timelines:
The terms of the Buyer Brokerage Agreement should be explained in detail. Keep in mind, as with any agreement, it can be terminated in the event that circumstances change.
Your home is one of your biggest investments, and having an assistant and team behind you and your real estate agent is crucial.
While both real estate agents and Realtors® must be licensed by the state, a Realtor® must be a member of the National Association of Realtors® (NAR), which mandates that their members to adhere to a "Code of Ethics" and "Standards of Practice" higher than the law. This requires re-training every two years.
Your home is probably your biggest investment, so choose a real estate agent who is proven and knowledgeable. Read their client reviews. Visit the agent's website. Take a look at their past sales. Then take a moment to think of some questions that are important to you.
There are many things you can do to help prepare for the mortgage loan process. One of the most important things is to create a budget to help you decide how much you would like to spend.
You could also work on decreasing debt, saving for a down payment, improving your credit score, or maybe even asking for a raise at work.
Most importantly, do not make any major financial decisions without consulting your lender.
You can also begin preparing any documentation typically needed for the mortgage loan application.
Choose a lender who makes you feel like you are the priority - one who is knowledgeable, communicative, and patient throughout the process. Ensure you are fully informed by thinking of some questions that are important to you.
There are a variety of loan products, so it is important to take your time and fully understand, without any pressure, which type of loan is best for your financial goals. The lender you choose should guide you towards the loan product that best fits your needs.
Request a Loan Estimate from each lender for easy comparison. Shop the lenders and let each of them know why you are thinking about choosing another lender, in case they can make any adjustments in your favor.
If you are looking to finance your home, you may find it difficult to navigate all of the financing options, so we take the time to help you coordinate with some local lenders to assist with the process.
There are a variety of loan products, so it is important to take your time and fully understand, without any pressure, which type of loan is best for your financial goals. The lender you choose should guide you towards the loan product that best fits your needs.
We highly recommend you request a Loan Estimate from each lender for easy comparison. Shop the lenders and let each of them know why you are thinking about choosing another lender, in case they can make any adjustments in your favor.
Generally, "pre-qualified" and "pre-approved" are terms that are used interchangeably, but the small difference is that you are pre-qualified before the review of your financial documentation and pre-approved after the verification of your financial documentation. Understand this is not a guarantee of a loan, but it will help you know what you can afford.
In addition, a pre-qualification can be required by real estate agents and sellers, so it is always nice to have this to attach to an offer to show you are ready to make a deal.
Remember to consult your lender before making any major financial decisions.
Once you have your pre-approval, feel free to look around to see what is available in this price range. Distinguish your "wants" from your "must-haves" before you start house hunting, and try not to get wrapped up in everyone else's opinions. It is natural to want to get reassurance about such a big decision, but be sure you are focusing on the best decision for you.
A huge benefit to working with Hum Real Estate is that we spend time monthly previewing the newest homes on the market with agents from other brokerages, so we are always on top of what is coming to the market and in close contact with the agents representing those sellers.
The Multiple Listing Service (MLS) is the platform where real estate agents input homes for sale. This eventually syndicates to websites like Zillow and realtor.com. However, not all of these third party websites get all the data - for example, “Coming Soon” homes.
Locally, “Coming Soon” homes are not listed on Zillow and similar websites. These are homes that will likely be listed for sale within a few weeks, but are not on the market yet. There are several reasons this may happen, but is most commonly because the seller is putting the finishing touches on the home before officially listing it for sale. In today’s competitive market, learning about a home for sale days or weeks before the general public could be a game changer.
We use a tool called Collaboration Center. With this platform, you are notified, in real time, of new homes listed for sale, including homes that are "Coming Soon.”
Websites like Zillow are still great resources for homes that are listed For Sale By Owner, so it may be helpful to still utilize those platforms.
It's important to go into your home search with clear priorities. This includes knowing which features and amenities you need your home to have versus the ones that are nice perks. This step of the process will be helpful as you prepare to begin your search for a real estate agent.
Must-haves include features that if a home were to not have them, it simply won’t work for you and your lifestyle.
Nice-to-haves include features you’d love to have but can live without. They aren’t dealbreakers. They may also be things you can afford to add to the home later on.
Share these things with your real estate agent, so you're aligned from the start and know how to focus your home search.
Once you have selected the homes you are interested in seeing, your agent should take the time to individually schedule each showing, and map out the best route to visit the homes with you.
Your agent should also have property information readily available in order to keep you informed throughout the process.
Before making an offer, your agent should create a detailed Comparative Market Analysis on the home to determine the best offer price. You will then meet to review the Sale and Purchase Agreement. This document includes information like the price offered, financing terms, the earnest money deposit, contingencies, and the closing date.
The earnest money deposit is most often 1% of the purchase price, and can be delivered on the contract date, or up to a few days after. It is deposited into an escrow account until the closing date, at which point the money is typically applied to the your costs at closing.
Contingencies are based on the satisfaction of things like the appraisal, inspections, insurability, and financing. Your agent should take the time to review each clause in detail, because failure to abide by the terms of the agreement could place your earnest money deposit as risk. Your agent and their team should keep you reminded of the important contractual obligations and their respective due dates along the way.
Upon receipt of your offer, the seller may accept, counter, or reject the presented contract. This isn't always about the highest offer price, but may be about specific terms - it is all dependent on the motivation of the seller.
The best offer will have the most preferable price, terms, and closing timeline, but there are ways to give yourself an advantage. Things that tend to be prudent in strengthening your offer are:
Dealing with a rejected offer can be frustrating, but it is a great way to learn if the strategy needs to be re-examined.
It is important to note that negotiations may come into play again after the appraisal, inspections, and financing processes.
Congratulations! Your offer has been accepted, and the clock starts ticking! Your agent should provide a document outlining the contractual dates of importance - the dates by which certain items need to be accomplished.
It is important to perform the obligations required of you by the deadlines, to avoid unfortunate situations like the loss of the earnest money deposit. Your agent should be in very close contact with you during this time.
The Seller's Property Disclosure must contain anything known that could negatively affect the value of the home.
Other common disclosures include the Homeowner's Association Disclosure, Lead Based Paint Disclosure, and Flood Disclosure.
Take your time to understand all the legal disclosures, and ask your agent any questions you might have.
Within just a few days of the accepted contract you will likely be required to complete the loan application process.
Once your loan application is approved, it will enter the underwriting process. Underwriting is the part of the loan process in which the terms and conditions of the loan are determined. You may also be asked for additional documentation or verifications of previously supplied information.
The appraisal is typically ordered by the lender. It is an unbiased estimate of the fair market value of the home, and a process that takes into account the home's condition and the values of similar homes in the area.
The main goal of the appraisal is confirming the value of the home is equal to, or greater than, the purchase price. Otherwise, further negotiations may be needed.
Inspections will give you an idea of the home's overall condition, so that you can make an informed decision. There are several types of home inspections you may want to consider, but the two most common are a general home inspection and a Wood Destroying Organisms (WDO) inspection. These are typically ordered by and paid for by the buyer. At Hum Real Estate we have a fully interactive Concierge List with hundreds of local service providers, so this process will be less overwhelming. Your agent and their assistant may also be able to help you coordinate the inspections.
A general home inspection is an objective, visual examination of the physical structure of the home from the roof down to the foundation. A WDO inspection is an examination of the home for visible evidence of an infestation or damage by things like termites, beetles, or fungi.
During this inspection period, the clock is still ticking, so work closely with your agent and communicate often to ensure everyone is up-to-date. Once inspection reports are in hand, you will want to ensure you fully understand the findings and begin further negotiations, if necessary.
It is also helpful to ask potential home insurance companies if a Wind Mitigation or 4-Point Inspection would help save you on insurance rates. The Wind Mitigation (or Windstorm Mitigation) Inspection verifies the home's wind resistant features. A 4-Point Inspection verifies the condition of the roof, electrical, plumbing, and HVAC.
Title insurance and homeowners insurance are both extremely important, and often required by lenders. Title insurance may protect you from certain losses in the event an issue arises with the title after closing. Typically, title insurance will be required for both the lender and the buyer.
On the other hand, homeowners insurance policies typically cover damages caused by things like fires, sinkholes, burglary, and natural disasters. It is important to understand what is covered in the quote, and look for additional insurance for damage caused by flooding or natural disasters common to the area in which the property is located. For this, you will consult with a licensed insurance agent.
It is prudent to receive multiple home insurance quotes. This can be important in ensuring the policy you select meets your needs. You can also ask about discounts or bundling to save on rates.
Reviewing the coverage is just as important as the rate and the premium. Keep in mind that deductibles may be different for each peril the insurance policy covers. Be sure to ask any clarifying questions.
“Replacement cost” and “actual cash value” are also phrases you may come across in your search for home insurance. Replacement cost means the policy will cover the cost to replace the damaged item at today’s prices. On the other hand, actual cash value means the insurance company will pay for the cost of the item minus the decreased value of the item over time:
Surveys are important and often required by lenders. The survey determines the plot of land you will be purchasing by confirming the land boundaries, identifying conditions, and looking for easements and/or encroachments.
An easement is a legal agreement which gives someone else the right to use or access the property without owning it. For example, a utility easement may allow the power or telephone company to run lines through a property. Similarly, private easements can be created with neighbors.
An encroachment occurs when someone violates the property rights of another owner. For example, if the neighbor installed their fence or a storage shed on a portion of the property.
If possible, we suggest the survey is ordered after the contingency period has ended to avoid being liable for the cost of the survey if the contract is terminated. However, surveys take time to complete, so during the peak of real estate season, it is important to rely on local surveyors or your real estate agent if more time is needed to complete the survey by closing.
The final walkthrough of the home should be immediately before closing. You will verify the house is in the same condition it was in when you placed the offer, that all negotiated repairs were completed, and that all items included in the Purchase and Sales Agreement are in the home.
At closing, you should compare the lender’s Closing Disclosure to the closing documents to ensure accuracy. You'll want to bring your forms of identification, and it may also be helpful to bring a personal check, in case there are any small discrepancies.
When wiring funds, NEVER follow instructions sent via email. Always call the requestor using an independently verified phone number to confirm wiring instructions.
You’ve got questions and we can’t wait to answer them.
