Why Buy Your House:
1. Real Estate has a long history of appreciating values.
2. Appreciating values create equity – making real estate a great investment.
3. There are many tax advantages to owning your own home.
4. Maybe you are a newlywed.
5. Maybe you have found a new job.
6. Maybe your family is growing.
7. It is nicer to come home to the place you own, rather going to a place someone else owns.

Buyer’s Importance to the Real Estate Transaction:
Without the Buyer, the transaction will not happen. The Buyer, if willing to work hard, can usually find a house within their price range and location. If a lender denies your application – try another lender. The Buyer can control the transaction if he/she is willing to put forth the effort. Being the Buyer in control, you won’t be able to get the house for a song, but it also means you don’t have to let the Seller take advantage of you. The best real estate transaction is a transaction where both the Seller and Buyer are satisfied with the results. It is best to have both parties pleased. Remember – you never know what tomorrow might bring. Don’t let a real estate transaction wreck your reputation.

Prior to Looking at House Listings:
Why are you looking at purchasing a home?
a) Are you relocating?
b) Do you need more space?
c) Are you downsizing?
d) Do you just want to start obtaining equity?
What are your needs and desires?
Prioritize your desires.
Consider:
a) Price
b) Location
c) Size
d) Safety
e) Number of Bedrooms
f) Number of Bathrooms
g) Schools
h) Work
i) Neighborhood
j) Style
k) Property Features:
a. Woods
b. Acreage
c. Waterfront
d. Roads lighting
e. Quiet areas
f. Association Fees
g. Anything that is difficult to add to your house later

l) House Features:
a. Jacuzzi
b. Fireplace
c. Garage
d. Covered Parking
e. Deck/Patio
f. Cable TV Availability
g. Natural Gas Availability
h. Public/Private Sewer/Water
i. Central Air Conditioning
Get Pre-Approved for a Mortgage:
Pre-Approval and Pre-Qualified are not the same. Being Pre-Approved will give you much more
leverage when you have found the desired house.
Pre-Approval will make you aware of what you can spend for a house and keep you from wasting time
looking at houses you can’t afford.
Sellers will generally consider the offer of a Pre-Approved Buyer before an offer from another buyer.
Getting pre-approved is more difficult than getting pre-qualified, but being pre-approved puts the Buyer
in a stronger buying position and the work to become pre-approved will need to be done anyway prior to the close. The amount of time it takes to close the real estate transaction will be quicker if you are pre-approved.
Being Pre-Approved, Buyers can lock in interest rates sooner than others.

Starting Your House Search:
Try to find a few different areas (neighborhoods) that would please you. The more options you have, the less likely to be forced to overpay for a house. As you have probably heard before – location is everything. While almost everything about the house you plan on purchasing can be changed, the location can’t. That is why HutHound.com suggests that buyers spend a great deal of effort to becoming educated about the area.
You can find city profiles by going to http://www.bestplaces.net.
Use the HutHound.com checklist when searching multiple listings.
Consider your needs in your new house.
Consider you desirers of your new house.

Once You Have Selected a Few Houses:
Find out what kind of neighbors you would have.
Check on the local taxes – will they increase after purchase?
Check out the local Library
Post Office
Churches
Police Department – for crime stats
Parks
Schools
Does the house require repairs? A few things to check prior to hiring a home inspector:
Cracks, loose masonry could possibly indicate foundation problems.
Check the function of windows and doors. Windows and doors operating poorly could mean a few different things. It could signal problems with the foundation, bad workmanship (could be a reflection of the entire house), or it could be just the age of the house, which is expected after time.
Take a look at the lawn. If the lawn is ugly – this could mean the home owner has not had the time or hasn’t wanted to keep up with maintenance.
Find out about the roofs condition and age.

If repairs are needed, how much will the repairs cost?

Select the Best House:
Email the Seller and ask more questions and work toward making an offer. After viewing the Disclosure Statement and determining how to structure your offer – download the Real Estate Forms.

Make an Offer:
Many Buyers will obtain an attorney to help with the purchase process. Contracting an attorney is recommended. If you are confident that you can do this without the expense of an attorney (purchasing/selling real estate without an attorney in NOT recommended) then fill out the Purchase Agreement making sure to cover every possible future issue. When determining how much time to give the Seller to accept your offer, consider: they probably don’t need much time. Sometimes a Seller will have an attorney look at the Purchase Agreement. This shouldn’t take more than a couple of days. Include a contingency plan if the house inspection reveals items to be addressed that the Seller can’t resolve. Your offer can be contingent on anything – an acceptable appraisal, acceptable inspections, an acceptable survey, financing and many more. Every item negotiated should be specific and in writing. The more specific Sellers and Buyers are, the less chance for the transaction to fail. When both parties overdo everything in writing, a less stressful transaction will follow.
Most Sellers will require an earnest deposit. An earnest deposit is a good faith deposit showing the Seller you are serious. Most earnest deposits are 1%-5% of the purchase price. The earnest deposit will be applied to the purchase price of the property. Make sure any earnest money is going to be held at the Title Company in escrow or somewhere that is agreeable, other than the Seller.
Buyers can help themselves when determining what price to offer. The Title Company can usually collect information from the local registry of deeds (recorder’s office). These offices record real estate sales information for taxing purposes. The records usually indicate the sales price, square foot and the amount of rooms. Many times, the Seller will place their house on the market with an inflated price. They will sometimes prepare in advance for negotiations. This is not always true and some Sellers will not accept anything but a full price offer. Many times the Seller and Buyer can negotiate a price via email or phone. When there is an agreement between the Seller and Buyer, present the Seller with a detailed Purchase Agreement.
Once you have determined what you will offer email the Seller to find out how they are able to accept bids. When you are ready, Fax or mail a copy of the Purchase Agreement to the Seller and include your pre-approved documentation (if you have it).


Secure a Lender:
Most Buyers require a lender to provide financing at the closing. Hopefully as a Buyer you have been pre-approved and just need to finish the mortgage process.

Get House Inspected:
If you are not qualified to inspect the house….don’t. Obtain a qualified House Inspector to inspect the house.

Title Insurance:
As a Buyer, some believe they only need to get the Deed at closing. You will need the Deed, but it needs to have a “clear title”. Outside parties, other than the owner, may have legal rights to the property being sold. These outside parties could be mortgage holders, unpaid taxes or possibly someone the owner owes money. Many of the liens will transfer with ownership (you as the Buyer will be responsible for the debt). Title Insurance should find all of these outside parties involved so the debts can be cleared at the closing. The Title Company can also act as a neutral party and make sure both parties follow the purchase agreement. They can also hold the earnest deposit in escrow. The Title Company will need to know how the Buyer will finance the purchase. If there is a lender involved and who it is. The Title Company can communicate with the lender, so the lender is aware of the amount due at closing.

Homeowner’s Insurance:
Homeowner’s insurance will protect you from certain damages to your house. Sometimes a Buyer can assume the Seller’s homeowner’s policy. If this is not done, you will need to get your own. When getting homeowner’s insurance, consider additional coverage to protect you from natural disasters that are prone in your area.

Utilities:
Make sure the water/sewer, gas, and electric meters are read the day of closing. The Seller will be responsible for the cost of these items prior to closing. Contact these companies to create an uninterrupted service. Some of these providers might require a deposit.

Closing:
The Title Company should be prepared for closing with the lender involved. If you are not using a lender, you will need to have a check that has been pre-approved by the Title Company.

Parties:
In this section we are not discussing outside parties or Sellers and Buyers. After the closing, we at HutHound.com think it is time for a PARTY!! Celebrate your new purchase and be proud of the effort you have put into this process. Now send out the new address notices.