How Buyers Are Protected in Our Market

When helping you buy a home, we always want to be sure you’re protected. Here are a few ways we do that.

Want to sell your home? Get a FREE home value report
Want to buy a home? Search all homes for sale

A buyer of any commodity obviously has to be aware of what they’re buying, but when it comes to real estate in D.C. and Maryland, there are already a lot of protections in place for buyers. As your representative, we want to go above and beyond to make sure you are fully protected throughout the process.

In both the D.C. metro and Maryland, there is a required property condition disclosure. The seller fills it out, giving their assessment of the condition of the home. At the bottom of that form, it asks the seller if there are any defects that they would like to point out. The seller typically doesn’t put anything down, then signs. If you find out down the line that something is wrong with the home and they knew about it, having their signature on that disclosure is key.

Sellers are required to disclose any known defects up-front.

When we write an offer for you, the first thing we do is show you these disclosures so we can work what the sellers have to say about the condition of their own homes. We also have disclosures for lead-based paint and radon. We can get you the information on property taxes and utility costs as well. We will also add extra protection to the contract including an inspection contingency and an appraisal contingency.

These are just some of the additional protections we put in the contract for you. All in all, always be aware that we are taking care of you to the full extent of the law and our expertise. If you have any questions about this topic or anything else relating to real estate, give me a call or send me an email. I would love to hear from you.

4 Mistakes First-Time Home Buyers Should Avoid

If you are buying a home for the first time, it’s easy to get overwhelmed. Today, I’ll go over the four most common buyer mistakes that you should avoid in order to have a successful transaction.

Want to sell your home? Get a FREE home value report
Want to buy a home? Search all homes for sale

First-time home buyers are a real asset in our current market. In fact, the National Association of Realtors has just come out with a report showing that first-time home buyers made up 34% of home sales in the month of September.

That said, if you are buying a home for the first time, there are a few pitfalls you should avoid in order to have a successful transaction. Here are the top four mistakes that first-time home buyers make:

1. They don’t get pre-qualified by a lender. Buying a home is one of the biggest, most important financial transactions of your lifetime. It’s very important to understand the numbers going into the transaction. A good lender will be able to tell you how much house you can afford and how your mortgage payment will impact your monthly budget. It’s very important that you talk to a lender before you start looking at homes. That way, you won’t fall in love with a home that’s too expensive for you.

Get pre-qualified before you begin your home search.

2. They wait too long to make an offer. It can make people very anxious to make an offer on a home, but the fact is that good houses will sell very quickly. There comes a point at which you need to take action. You need to be decisive and put your offer in. When you do see a house that you really like, get in touch with your agent to make an offer so you can actually get the home.

3. They make a low offer. Since we are in the era of the Internet, active listings get a lot more exposure these days, and many homes sell right at or just below fair market value. If you make an offer far below market value, the seller may not even look at it. Don’t go into the market thinking you can make a lowball offer. Don’t waste your time; be realistic about how far your money will really go.

That said, how do you know what fair market value is? Your agent can determine fair market value by comparing the property you are interested in to a similar house in the same neighborhood that recently sold. That number is a good indicator of what the home is worth in the current market.

4. They rely too heavily on Internet resources. The Internet is a very valuable source of information for home buyers. In fact, 95% of home buyers begin their home search by looking online at sites like Zillow. Zillow gives estimates on home values, but in our marketplace, those values can be off by as much as 15%. A good real estate agent can actually determine how much a home is worth in the current market. Your agent will examine any issues with the home and compare it to other homes on the market in order to tell you precisely what the house is worth.

If you avoid these four mistakes, you will be able to successfully purchase a home. Of course, the right real estate agent can guide you through the buying process and help you avoid all of these pitfalls.

If you have any other questions about the buying process or about the real estate market in general, give me a call or send me an email. I would be happy to help you!

Our 4 Phase System for Home Buyers

When we help buyers find a home, we employ a step-by-step process with four phases in order to make sure that nothing is overlooked, they’re fully prepared, and they understand everything going on throughout the transaction. We do this so that by the end of the process, you know that you’ve purchased the right house, on the right terms, and have no regrets. Here are the four phases:

• Phase 1: Preparing to purchase a home. This involves making sure that your credit is in order, that any overseas money has been seasoned, and that the lender is okay with any moving around of money that needs to be done. We’ll go to a lender, get you pre-approved for a loan, and talk you through the steps in the sales process to make sure that you’re comfortable.
• Phase 2: Looking at properties. We’ll be looking at properties online at the same time you are and will set up certain filters to make sure that you’re not wasting your time looking at properties that wouldn’t be a fit for you. After that, we’ll help you assess the properties that you are interested in by stepping into the house with you. You’ll then have to make some decisions about which house is the right one for you and we’ll help talk you through that process, discussing certain factors like location, commute time, and community facilities in order to help you make the right decision.
• Phase 3: Presenting your terms on a home. In this area, the agent is responsible for actually writing the offer. That offer is on standard, approved contract forms that we use for each transaction, but we’ll be sure to amend them in order to best protect you. Putting this offer together for you, presenting it, and negotiating it will help us get you into a contract.
• Phase 4: Due diligence. We’ll inspect the house, look at the HOA or condo documents, check for radon and lead paint, and coordinate everything with the settlement attorney so that the title is searched and there are no glitches. At the end of Phase 4, you’ll have purchased a new home!

If you have any questions about what is involved in each of the four phases, please don’t hesitate to call or email us and we’d be happy to discuss it in more detail with you. We’re looking forward to using these four phases with you soon!