Frequently Asked Questions For Buyers

  1. How many houses is it necessary to view before the right house is found?

  2. How long does is take to look at a house?

  3. How many times does a buyer need to see a house before an offer is written?

  4. What is the difference between a city inspection and a buyers’ inspection?

  5. Is agency disclosure necessary?

  6. What four alternatives are there following a buyers’ inspection?

  7. What is earnest money? When is it written? When is it cashed? How much money is it?

  8. What are typical examples of personal property?

  9. As stated in a standard purchase agreement, how many times can a buyer come back to view the house?

  10. What kind of work can a buyer do on a property prior to closing?

  11. What is the difference between arbitration and litigation? When are they used?

  12. What is the difference between closing and possession?

  13. Does a buyer attend closing?

  14. What is title insurance?

  15. What is the role of a closer?

  16. How important is a loan officer? Does it matter what mortgage company they are with?

  17. Can the terms of the finance addendum be changed after signing?

  18. A Realtor representing a buyer gets paid in what manner?

  19. Can possessions be moved in prior to closing?

  20. How painful is the buying process?

Answers

  1. Typically 8-10 houses are viewed before the right one is found.

  2. The first viewing takes about 15 minutes.

  3. It takes only one time.

  4. Some municipalities that a property is listed in require city inspection. It is done prior to listing and can be general. A buyers’ inspection is done typically 3-5 days after the purchase agreement is accepted. It is paid for by the buyer and is intended for the buyer only.

  5. Yes, agency disclosure is necessary. All buyers and sellers need to know who has their fiduciary interest.

  6. A) Accept the condition of the house as seen.  B) Cancel the purchase agreement.  C) Accept a financial settlement.  D) Have the seller make repairs or replacements prior to closing.

  7. Earnest money is a pledge to close on the property. It is written at the time of the purchase agreement. It is cashed upon the acceptance of the purchase agreement and is credited at closing as part of the down payment. The buyer can lose the earnest money if they do not perform as stated in the purchase agreement.

Earnest Money Examples:

Purchase Price              Earnest Money

$95,000-$150,000                        $1,000

$150,000-$250,000                      $1,500

$250,000-$350,000                      $3,000

$350,000-$500,000                      $5,000

$500,000+ $10,000+                   $10,000+

  1. Some typical examples of personal property are refrigerators, stoves, washers & dryers, window treatments, shelf-microwaves.

  2. Only once, at the time of the final walk-through.

  3. None. A buyer prior to closing can do no work on a property.

  4. Arbitration is used when all parties agree on the purchase agreement to settle any differences after closing via this means rather than the courts. An attorney may or may not be used. Litigation is done through the courts and an attorney is typically used.

  5. Closing is when the legal transferring of title takes place and monies are exchanged. Possession is when the buyer has to right to move in. They are not always the same.

  6. A buyer does not necessarily attend closing.

  7. Title insurance is insurance that protects the mortgage company against any clouds or liens on the property not detected prior to closing. A separate policy needs to be taken out for the buyer.

  8. The role of the closer is to facilitate the paper work from the lender, the purchase agreement, monies, and recording duties necessary following the closing.

  9. The loan officer is the person who prepares the loan application to be reviewed by the underwriters. Their ability to understand the needs of the buyer and frame a mortgage to meet those needs is very important.

  10. Only when mutually agreed upon by the buyer and seller can the terms of the finance addendum be changed after signing.

  11. A Realtor representing a buyer gets paid by the seller.

  12. No possessions can be moved in prior to closing.

  13. The buying process should not be painful in the least.

How did you do?

 

If you did not know all of this information,

 

you are in need of  The Paulus Team.

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