DO YOU KNOW WHAT IS INVOLVED BUYING A HOME? AND YOUR COSTS??
MY TEAM IS HERE TO HELP YOU BUY YOUR HOME IN THE ROANOKE VALLEY AND BEYOND.
Homebuyers: Here’s What the NAR Settlement Means for You (FROM NAR)
Buying a home is one of the largest financial transactions most people will ever undertake. Frazier and his team are a trusted source of advice and stand ready to help you navigate your home buying journey and make the choices that work best for you. NAR’s recent settlement has led to several changes that benefit homebuyers, and I wanted to clearly lay them out for you so I am sharing their article:
Here is what the settlement means for homebuyers:
- You will sign a written agreement with your agent before touring a home.
- Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
- The buyer agreement must include four components concerning compensation:
- A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
- Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
- A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
- A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
- Written agreements apply to both in-person and live virtual home tours.
- You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
- The seller may agree to offer compensation to your agent. This practice is permitted but the offer cannot be shared on a Multiple Listing Service (MLS)— MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
- You can still accept concessions from the seller, such as offers to pay your closing costs.
These practice changes went into effect August 17, 2024.
Here is what the settlement doesn’t change:
- Agents who are REALTORS® are here to help you navigate the homebuying process and are ethically obligated to work in your best interest.
- Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding an agent to work with, ask questions about compensation and understand what services you are receiving.
- You have choices. Work with Frazier and his team to understand the full range of these choices when buying a home, which will help you make the best possible decision for your needs.
More details about these changes and what they mean can be found at facts.realtor.
The Frazier Hughes Experience REALTOR® Buying Process:
- Trusting me as your agent my team, using my expertise, Dale Carnegie Trained
- Do you understand the market? We do. With over 180+ transactions under our belt in 3 years!
- Homes are in a shortage; sellers are getting above asking price for homes highly sought after in less than a week on the market — if the home has been on the market 2 weeks or longer you may be able to go less than asking price.
- We go to bat for you writing creative contracts to help you get the home. Great communication is key; Frazier is Dale Carnegie Trained.
- What area of town and what type of home fits your needs? We will make you part of our marketing campaign to receive homes daily.
- How are you paying for your home?
- Do you have to sell your home to buy a home? Do you understand subject to suitable housing?
- Who is your lender? I have 5 on demand and everyone you need on speed dial and work with one of the top lenders in The Valley, it’s your choice!
- If you have a loan, what type is it, and what is the structure of your loan to make sure you can afford your home and payment, do you understand “all” of your fees: closing costs, paying for your appraisal, fees. — and your down payment??? Do not be caught off guard.
- EARNEST MONEY DEPOSIT: The earnest money deposit is made along with your offer to show the buyer that you are a serious buyer and goes TOWARDS your down payment. Depending on your comfort level and price of home this number usually starts at $1,000 and up.
- Determine your loan options and obtain a pre-approval letter from a lender prior to beginning the home search. Some homes are going under contract within days, so being able to move quickly with your letter when making an offer lets sellers know you qualify. Many won’t consider your offer without this letter!
- Paying cash this is not needed but proof of funds is.
- After selling over hundreds homes I have found you more than likely won’t be able to present an offer that’s below the asking price if it just hit the market. If you love the property, present the seller with your best offer price. If the house has been on the market for longer than a couple of weeks your chances are better of making a lower offer are greater.
- If you want your offer to compete with multiple offers can you afford to pay more for the home than asking price? If so, consider having me include an escalation clause. The clause details how much you’re willing to pay over competing offers. Including an escalation clause in your offer is another way to show a seller that you’re a serious buyer.
- Inspections: You’ll want to get a home inspection performed on the property before closing. This contingency allows you to renegotiate or back out of the deal entirely if it reveals serious issues or the seller can fix them. Sometimes they lower the price instead. You pay for the home inspection $700+. Do you want radon too? Termite? Well, Septic? We will discuss. The buyer is responsible for all inspections *Structural/roof/foundation, electrical, hvac, plumbing, termite, radon.
- We, my team, and assistant setup all inspections, and communicate with title company, lender, inspectors, other realtor, parties involved in transaction in your behalf.
- We negotiate the repairs for you to make sure you are comfortable buying your home!
- Appraisal: This contingency allows you to renegotiate or exit the transaction if the home’s appraised value is less than what you’ve offered. *Your lender will require this and you pay for it $500 +
- Home inspections make the home buying process safer for you and waiving some of them can make your offer more competitive. Make sure you discuss with me before doing this, though. Waiving contingencies is seldom recommended and could have serious repercussions. *Who is your home inspector? You choose, we can suggest them too!
- Do you have a preferred title company? You choose, we can suggest some too!
- Making an offer, what type of offer, when is your closing date?
- How much is your earnest money deposit? By offering more earnest money, you’re letting the seller know that you’re a committed buyer. *This deposit goes towards your closing costs, loan. It’ help by the title company and must be delivered within 5 business days
- PAYING FOR TITLE INSURANCE & HOMEOWNERS INSURANCE? How are they different? One of them is concerned with the ownership rights to the property, while the other one provides protection if there is a loss on the property itself. TITLE INSURANCE provides coverage against loss due to liens and defects on title.
- Did you know your home may not close on time? Closings can be delayed by days, sometimes a week, or longer, depending on situations out of your control, lender, etc.
- THE FINAL WALKTHROUGH: 1-2 days before closing; making sure the home is the way it was when you made your offer; making sure repairs are done.
All of these and more are critical to your purchase! Stay positive, I am here to make The Experience Real, help you understand all of your options and more. Please feel free to call or text anytime to find and sell your home in The Roanoke Valley and Beyond 📞 540-314-5583.
- BONUS TIP:
- Utilities should be turned on before you move and put into your name. Here is a list of the companies in your area: https://www.roanokeva.gov/977/Utilities
