Detailed Buying Information

• Overview of the Buying Process
• The Benefits of Home Ownership
• How to Find the Right Home for You
• Home Inspections and What to look for
• Frequently Asked Questions...and Answers
• Contact Rose Real Estate

Real Estate Agents

You can sit down with a real estate professional and discuss your needs, area of town, style of home, amenities and everything you really want in your next home. Real estate professionals can help you by accessing a Multiple Listing Service which covers all properties listed for sale within a specific area. Together, you can select the homes you would like to see, set appointments and preview homes in a short period of time. A real estate professional can guide you through the entire process.

Newspaper Ads and the Internet

Many people go through the real estate classified section or browse the Internet to find a home that appeals to them. However, your real estate professional will have access to many listings available that may not appear in the newspaper or Internet on a continuous basis. New listings come on the market daily, and the good ones are sold before they hit the papers.

Local Multiple Listing Service

When working with a real estate professional, they should have access to the multiple listing service in your area. It usually includes the following details about homes and properties for sale:

• Location
• Price
• Photograph
• Type of Utilities
• Amenities
• Annual property tax
• Square footage
• Number of Bedrooms, Bathrooms and Garage spaces

When viewing homes

• Keep notes when viewing homes so you will be able to remember and discuss the details later.
• Ask any questions about the home and discuss any objections or concerns you may have.
• If you find a home you like, be sure to find information on schools, shopping and transportation.
• You may ask specific questions about the construction of the home; electrical, plumbing, heating, cooling systems, etc. If you do find something questionable, remember that you will have a right to an inspection if your offer is accepted.

Relax. Finding your new home can be a great experience. Have a good time and enjoy the process.

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What is an inspection?

There are numerous types of inspections. An inspection is meant to evaluate, at minimum, the structural and mechanical condition of a property. It is not the same as an appraisal which evaluates the market value of a property. Persons involved in real estate transactions need unbiased information about the physical condition of property they plan to buy or sell and your contract should include a contingency that you obtain a satisfactory inspection report. Talk with your agent about the types of inspections available.

Home Inspectors vs. Engineers

Home Inspector: A person who examines any component of a building, through visual means and through normal user controls, without the use of mathematical sciences.

Engineering: Analysis or design work requiring extensive preparation and experience in the use of mathematics, physics, chemistry and the engineering sciences.

Finding a qualified Inspector

• Referrals from satisfied customers
• Referral from a local real estate agent or mortgage company
• Local consumer affairs office
• Yellow Pages under "Building Inspection Services"

Ask if she/he is a member of the American Society of Home Inspectors (ASHI). The ASHI has established standards of practice which include the specific services, limitations and exclusions that can be expected from private home inspectors.

What the inspection, at minimum, includes

Every inspection should include, but not be limited to, an evaluation of at least the following:

• Foundations
• Plumbing and electrical systems
• Doors
• Ceiling, walls and floors
• Roof
• Hazardous materials concerns
• Heating and air conditioning systems
• Common areas (in condominiums)
• Insulation
• Ventilation

Check For Properly Working Appliances/Fixtures:

Bathroom

• Sinks
• Showers/tubs
• Toilets
• Vent fan
• Heating fan

Appliances

• Dishwasher
• Stove
• Oven
• Ice maker
• Garbage disposal
• Range hood
• Refrigerator
• Freezer
• Microwave
• Trash compactor

Kitchen

• Kitchen cabinet doors
• Drawers
• Sinks

General

• Lights (interior & exterior)
• Windows
• Heating system
• Ceiling fans
• Hot water system
• Air conditioning system
• Electrical outlets
• Door bells
• Doors
• Water purifier
• Fireplace damper
• Garage door

Exterior

• Brick bulging or cracking
• Shingles missing or broken
• Siding rotted or missing
• Gutters damaged or need to be cleaned
• Concrete cracked in sidewalks/driveway

Basement

• Water seepage in basement
• Cracks in foundation
• Poor ventilation

Interior

• Sub-flooring damaged or loose
• Cracked walls or ceiling
• Cracked tiles
• Loose plaster
• Flooring damaged
• Soft, springy floors
• Water stains near windows
• Water stains on ceiling below bathroom
• Water stains in attic
• Pipe insulation missing

What is the difference between "pre-qualified" and "pre-approved"?

If you are "pre-qualified" you have determined, with a loan officer, what price you can afford based on the down payment, your debts and the amount the mortgage company will approve for your mortgage. Being "pre-qualified" is only a determination of your probable credit. If "pre-approved", credit, employment and funds have been verified and that buyer has been approved for a loan by the lender.(Usually conditioned upon an adequate appraisal for the contracted property.)

What are closing costs?

Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For buyers, they are usually about 4-6% of the total sales price of a property. (This does not include the down payment) Some of the closing costs you might encounter are: application fees, appraisal fee, county taxes, credit report, discount points, documentation fee, escrow fees, homeowners' association fees, loan fees, mortgage insurance, loan origination fees, tax registration and title insurance premium.

What is a point?

One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. By charging "points", the lender can bring the real estate loan up to those other investments.

What is earnest money?

When you make an offer, you will need to put up an earnest money deposit as a sign of good faith that you are seriously interested in buying a home. That deposit becomes a part of the purchase price and is held in a trust account until there is full acceptance of the offer. Typically, an earnest money is 3-5% of the offer amount.

What is title insurance?

Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy.

Is VA or FHA financing unfair to sellers?

FHA and VA loans provide purchasers the opportunity to buy homes with minimal cash investment and at lower interest rates. The result is a larger market for sellers, who also benefit by receiving all cash for their equity. Do keep in mind when making an offer that FHA and VA loans mean higher closing costs to the seller.

What is the difference between a REALTOR® & Real Estate Agent?

REALTOR® identifies real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics. Not every real estate agent is a REALTOR®.

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