Q: Does having a buyer’s agent cost the buyer money?
Some people think they can save money by not using a buyer’s agent. This is simply not true! In residential Real Estate transactions the commission is almost always paid by the seller regardless if a buyer’s agent is involved.
Q: What services does a buyer’s agent provide?
First and foremost, market knowledge. Understanding the local market is key to finding the best home at the best price possible. This is not easily attained thru internet searches over a short period of time. Second, full access to MLS – comparable sales are extremely valuable when you are considering how much to offer on a home. Agents have access to the latest sales prices and can help you submit an offer that will be acceptable to both parties. Lastly, professional negotiation – making an offer and negotiating with a seller is by far one of the most specialized parts of the home buying process. Buyers can be emotionally involved and nervous which can lead to mistakes and is a risky approach to go it alone for your largest investment. An experienced buyer’s agent is a professional negotiator with a fiduciary duty to act in your best interest.
Q: What is a pre-approval?
This is a document that helps strengthen your offer to purchase real estate by letting Realtors and sellers know you have spoken with a banking professional and are qualified to purchase the home. This is often a required piece of your offer package.
Q: What do I need to apply for a pre-approval?
Generally speaking you need to provide the bank with your full legal name, date of birth, social security number, address, employment information, annual income, total amount of assets, desired purchase price, and the total amount of your intended down payment. They do the rest!
Q: What happens after my offer is accepted?
You will hire a residential home inspector (Ally can provide references) to conduct an inspection on that home and ensure it is in the condition you desire it to be. You will also reach out to your mortgage broker to lock in your interest rate and begin the full process of securing a loan. From there you will sign a Purchase and Sale Agreement.
Q: What is a Purchase and Sale Agreement?
A P&S is a document that outlines all relevant details, expectations, and deadlines of the purchase (purchase price, mortgage amount, credits or considerations negotiated after the home inspection). You will also most likely owe an additional deposit at this time (standard is 5% of the purchase price).
Q: How long does it take once I have an accepted offer on a home?
The standard turnaround time from the date of an accepted offer to the date of the closing is 6-8 weeks.