Buchanan Real Estate

Are you a READY, WILLING and ABLE buyer? If so, there are many things to consider. Are you READY? Are you prepared to move. Do you have somewhere to move to? Are you WILLING to take the steps towards purchasing if you find a home you love today? And the most important, are you ABLE? Can you afford it? Many people believe they know what their assets are and what they can afford to buy, but a mortgage company may not see it that way. It is best to get PRE-APPROVED for a loan BEFORE you begin to look at properties. It will give you a better idea of what price range you should be looking at so when you do find the home that you would like to purchase, the transaction will go much faster and smoother. It also saves lots of disappointment if you have found a house that you have your heart set on, only to find out that you are not qualified for the amount listed for the property.
THE SHOWING

If you are you READY to purchase a home, let's get started! Be sure to dress appropriately. In the winter, you may be looking at homes that are empty and without heat and in the summer it could be quite hot. You are about to make a large investment and you want to be able to spend as much time as you need to inspect the house and being comfortable is a big help.
THE CHILDREN

Whenever possible, please leave the children at home with a sitter. Please don't misunderstand. I do not want to exclude your children, after all it will be their home too, but children often get fidgety, bored and hungry or need to use the bathroom. Unfortunately, we won't always be able to accomodate their needs. When you find the home that you will purchase, then we will make another appointment so the kids can come see!
BE PREPARED TO MAKE AN OFFER

If you are serious about purchasing a home you will need to be WILLING to make an offer. If you have found the home that you want and are pre-qualified for the asking price, don't take to long "thinking" about it. It has happened to many times to count that someones dream home is forfieted to another because they took too long to decide. If you don't see anything you like on this trip, then we will keep looking, but if you are not prepared to make a decision and make the offer, you may loose out to someone else.
MAKING AN OFFER

By now you know if you are ABLE to purchase a home so have your checkbook ready. When you make an offer to the seller you will offer some kind of consideration. It does not have to be a large amount, but the more you can offer as a deposit, the more serious the seller will take your offer (especially if you have not made a full price offer). Once the offer is presented, the seller will have 3 choices.
*1. Accept the offer as is
*2. Reject the offer
*3.Make a counter offer to you
If the seller has made a counter offer, you will have the same options until everyone is in agreement and all of the paperwork has been signed and delivered to all parties concerned. The offer then becomes legal and binding.
FINALIZING ALL CONDITIONS
If the contract states that you will be financing the property, it is your responsibility to apply for the loan ASAP. You will need to hire a *qualified home inspector (it is STRONGLY recommended that you do) and to meet any other conditions that are stated in the contract.
* person normally engaged in the home inspection profession

Once the loan is approved more legal work is necessary. The title company will research the title and title insurance ordered by the bank to protect their interests. You will also have the option to purchase title insurance for yourself if you wish. If you are moving into a condo, co-op or mobile home park you will need to apply for entrance.
REMEMBER
1.Contact all of your utilities to notify them of change of service.
2. Inform your landlord (if you are renting)
3. A day or two before closing, you will be informed as to how much money you must bring with you to the closing. It MUST be in the form of certified funds A PERSONAL CHECK OR CASH WILL NOT BE ACCEPTED!
4. Bring with you to the closing your drivers license, the certified funds and an insurance binder or policy with paid receipt.
REMEMBER
Purchasing a home can be rewarding yet stressful at times. If an issue does arise, don't panic. There are very few that can't be remedied and we will always do our best to work through them.
REMEMBER
The home does not belong to you until the closing is done. Unless you are involved in a lease/purchase you may not under most circumstances move into the property until the time of closing.

As a consumer of real estate, whether you are a buyer, tenant, seller or landlord you have many choices to you as far as what duties your agent owes you. All buyers/tenants and sellers/landlords, whether contractually represented or not, must be treated honestly and fairly and all known information about the property, whether good or bad, must be disclosed to all parties concerned. To begin, lets go over the definition of "AGENCY".
AGENCY is a relationship between the PRINCIPAL (CLIENT) and the AGENT (the real estate brokerage firm and all of its sales agents). Both the AGENT and the CLIENT are liable for each others actions. The AGENT owes the CLIENT "FIDUCIARY" duties. These duties include:

1.*Loyalty
2.*Obedience
3.*Care/Diligence
4.*Accounting
5.*Disclosure
6.*Confidentiality

Loyalty - AGENT must place the interests of the CLIENT above anyone else, including the AGENT.
Obedience - AGENT must obey all instructions of the CLIENT (within the scope of the transaction and must be legal). The AGENT cannot discriminate or conceal any known defects.
Care/Diligence - AGENT must be careful in his/her actions. Example: be sure doors are locked and lights are off after showing a property, or to render competent advice.
Accounting - The AGENT must be sure that all monies and documents held on behalf of the CLIENT are properly accounted for as provided by state law.
Disclosure - The AGENT MUST disclose all material defects in a property that is being sold. Do not ask your agent to lie or omit any information about the condition of the property that is known to you and to him/her. It is illegal to do so.
Confidentiality - On the other hand, the AGENT must NOT disclose any personal information about the CLIENT, such as marital status, motivation for moving, the highest or lowest price acceptable or any other personal information about the CLIENT. Rule of thumb, if it is information about the property, the AGENT MUST disclose to all parties. If the information is about the CLIENT personally or may beneficial for the other party and detrimental to the CLIENT, it MUST be kept confidential. Confidentiality is required by the AGENT long after the sale has taken place. It is for life.

YOUR CHOICES
SELLER AGENCY

The AGENT works FOR SELLER, owes fiduciary duties to the SELLER and must represent all of the SELLERS interest in the sale of his/her property. The SELLERS may be liable for the actions of the AGENT or any SUBAGENT within the scope of the real estate transaction

BUYER AGENCY

The AGENT works FOR BUYER and owes the same fiduciary duties to his/her BUYER as a SELLERS AGENT. BUYERS may be liable for the actions of the AGENT or any SUBAGENT within the scope of the real estate transaction.

All of the sales people within the AGENCY whom the CLIENT has hired, will also represent the CLIENT. As a matter of historical practice, it was once common practice for ALL agents to be SUBAGENTS of the sellers. This was long before buyers began to hire AGENTS to represent them in their search for property.*
This extended to all of the other agencies. for instance, ABC company has the exclusive listing on your home. A sales person from XYZ company shows the property, He and all of the other sales people would have had the same fiduciary duties to you as your own agent. Many real estate companies have stopped the practice outside of their own company. It exposes the CLIENT and AGENT to far to much liability as both would be responsible for their actions.

This situation is arises when your AGENT represents you and the BUYER in the same transaction. example: Johnny Sellalot has the listing on your home. He also has buyers who have hired him as a BUYERS AGENT to help them find a home. They decide to look at your home. Now, it is not possible to represent BOTH parties completely, so BOTH parties would need to have this information disclosed and agreed to IN WRITING BEFORE THE SHOWING. In a Disclosed Dual Agency Agreement The AGENT
must remain honest and fair to all parties, but the fiduciary duties must be modified. All confidential information must remain so. The AGENT will not be able help either party negotiate in either party's favor.

If a consumer does not wish AGENCY REPRESENTATION in a real estate transaction, it is referred to as ANOTHER RELATIONSHIP or NON-AGENCY. The AGENT WORKS WITH you, must be fair and honest and disclose all material facts about the property. He may review the real estate process, show property, prepare and convey offers, provide information regarding professional services, but does NOT owe any of the fiduciary duties owed to a CLIENT.

So, whether you are a BUYER or SELLER, TENANT or LANDLORD, you have choices as to how you would or would not like to be represented in a real estate transaction. It is required by State Law that ALL real estate licensees provide you with a "Disclosure of Agency and Non-Agency Relationships in Real Estate Brokerage" form. The form further explains the information in this brochure. It is NOT a contract and binds you to nothing. It is merely a disclosure - a way to inform you of the choices that you have when buying or selling a home. You may sign this acknowledging that you have had this form provided and explained to you (again, it binds you to nothing) or you may choose not to sign it, but it must be presented to you.

While not everyone feels that they need to be represented by their agent, some should
consider it if:
You currently have your home listed for sale.
You are a relative or close friend.
You have bought or sold with this agent before.
You are purchasing commercial property
You are a first time buyer or seller.
You are an agent purchasing for yourself or family.
Your are purchasing from a builder.
You are relocating from out of the area.
You are a business Associates.
You want to remain anonymous.
You are an investor.
Hopefully, this has taken some of the confusion out of your choices for representation when buying or selling a home. If you would like more information, please come see us or give us a call.