helping you find just the home for you · a raveis realtor explains “agency” to you and...

Helping You Find Just the Home for You

Paul Bernardi

William Raveis Real Estate

812 Main Street

Osterville, MA 02655

508-272-1056

[email protected]

A Raveis Realtor Explains “Agency” to you and provides you with the Mandatory Agency Dis-

closures

Listens to your needs and will not waste your time showing you homes that do

not fit your criteria.

Abides strictly by the Code of Ethics, assuring you the most competent, pro-

fessional and ethical performance.

Has access to all inventory in MLS for every neighborhood and works closely

with other Realtors in sharing information about which properties are available.

Shows you homes within your budget and never pressures you

Will answer all questions to the best of their knowledge, and without violating

Fair Housing Laws, concerning zoning, neighborhoods, schools, churches,

transportation and communities.

Will answer all questions objectively, pointing out any defects or advantages in

the homes you view.

Knows the real estate values and can intelligently determine the fair market price

of a home at the time of purchase.

Is experienced in presenting offers and will guide you through every step of the

negotiating stages.

Is totally committed to you and your home search.

Steps to Buying a Home

Buyer

Select Raveis

Realtor Select Mortgage

Broker

Pre-Approval

Credit Report

Underwriting

Closing Attorney Deposit with offer

View Homes

Make Offer

Negotiations

Offer Accepted

Purchase & Sale

Select Attorney

Inspections

Title Search

Commitment

Deposit w/ P&S

usually 5%

Document Prep

Closing

Home Ownership

Document Prep

Working Together What it’s like to work with a RAVEIS REALTOR®

Here’s what our first two meetings will look like:

First Meeting: Discussion of Agency Relationship

Our Discussion – Nothing personal, financial or confidential

Buyer Needs Analysis

Showings – one day contract

Mortgage Pre-Approval: Even if you don’t need it today!

Second & Subsequent Meetings: Discuss Agency Relationship – Sign Buyer Agency Agreement

Copy of Pre-Approval from Lender

Showings – I work for you as the buyer, NOT the seller!

You should demand: Professionalism

Courtesy

Accuracy

Efficiency

Respect

We believe strongly that in order for you to be represented fairly, honest-

ly and equally with sellers, you need someone who is working for you. We

can talk through Buyer Agency, the Buyer Agency Contract and what

Buyer Agency can do for you.

Agency

Understanding "Agency" Or Who Works For Whom?

Buyer Agency

Agent represents the best interests of the Buyer Client and puts their needs first.

Agent owes to the Buyer

~ Undivided Loyalty

~ Reasonable Care

~ Disclosure

~ Confidentiality

~ Obedience to Lawful Instruction

~ Accountability

Agent must disclose known material defects in the real estate.

Agent gives all material facts to the Buyer so he/she can make an educated decision.

Agent will facilitate negotiations in the best interest of the Buyer.

Seller’s Agent

Agent represents the best interests of the Seller Client and puts their needs first.

Agent provides best efforts to secure ready, willing and able buyer.

Agent owes to the Seller

~ Undivided Loyalty

~ Reasonable Care

~ Accountability

~ Confidentiality

~ Disclosure

~ Obedience to Lawful Instruction

Agent must disclose known material defects in the real estate to interested parties.

Agent will facilitate negotiations in the best interest of the Seller.

Buyer Client

Raveis

Realtor

Represents

Seller Client

Raveis

Realtor

Represents

Agency

Raveis

Realtor

Seller Client

Dual Agency

Agent represents both Buyer and Seller equally.

Agent must obtain written consent from both Buyer and Seller.

Agent’s objective is to reach an impartial agreement that’s mutually satisfactory to all parties;

agent shall remain neutral regarding any conflicting issues.

Agent will give all options to both Buyer and Seller, but refrain from advising any party during

negotiations.

Agent may do nothing to the detriment of either Buyer or Seller. Confidentiality is owed to all

parties.

Agent is responsible for accounting of funds

Buyer Client

Represents

Works with

Raveis

Realtor

Raveis

Realtor

Buyer Client

Represents

Seller Client

Works with

Designated Agency

Allows one or more agents within a real estate firm to be appointed as a designated seller’s or buyer’s

agent.

Other agents within the firm may represent other buyers in the transaction with informed written con-

sent of each client.

Designated Agency does not change the way each agent works with their client.

Why do you want to move?

How long have you lived in your current home?

Would you call your lifestyle casual or more formal?

Have you bought or sold a home before?

What did you like about the experience?

What would you change about it?

How do you want me to communicate with you?

Have you been pre-qualified by a lender?

What price range is comfortable for you?

Ideally where would you like to be within that range?

Do you own your current home?

Would you like to buy first or sell first?

If sell, is it on the market?

How long has it been on the market? Is it priced to sell?

What are your needs and wants in a new home? (Needs Assessment)

Discussion Points

Be picky, but don’t be unrealistic. There is no perfect home.

Do your homework before you start looking. Decide specifically what features you

want in a home and which are most important to you.

Get your finances in order. Review your credit report and be sure you have enough

money to cover your downpayment and your closing costs.

Don’t wait to get a loan. Talk to a lender and get pre-qualified for a mortgage before

you start looking.

Don’t ask too many people for opinions. It will drive you crazy. Select one or two peo-

ple to turn to if you feel you need a second opinion.

Decide when you could move. When is your lease up? Are you allowed to sublet? How

tight is the rental market in your area?

Think long-term. Are you looking for a starter house with the idea of moving up in a few

years or do you hope to stay in this home longer? This decision may dictate what type of

home you’ll buy as well as the type of mortgage terms that suit you best.

Don’t let yourself be “house poor”. If you max yourself out to buy the biggest home

you can afford, you’ll have no money left for maintenance or decoration or to save money

for other financial goals.

Don’t be naïve. Insist on a home inspection and, if possible, get a warranty from the seller

to cover defects within one year.

Get help. Consider hiring a Raveis REALTORÒ as a buyer’s representative. Unlike

a listing agent, whose first duty is to the seller, a buyer’s representative is working only for

you. And most often, buyer’s reps are paid out of the seller’s commission payment.

Tips for Buyers

Home Inspection

Home Inspections provide a unique customer service in identifying existing and po-

tential issues, if any, that may not have been easily detected on initial visits to the

home. Inspections are not meant to be a vehicle for reducing the price, but for

identifying any structural or safety issues. Inspectors, however, will bring to your

attention maintenance items to help you in the future care of your home.

Areas that home inspectors look at:

Structural: Home inspectors are not meant to be structural engineers; how

ever they are trained to determine the integrity of essential internal

and external structural components and can identify visual defects

that require immediate repairs.

Electrical: A thorough examination of the electrical box and checking out

lets is an essential part of the inspection.

Plumbing: The inspector will check all fixtures for leaks and mechanical

systems to determine if all HVAC is in proper working order.

Built-in Appliances: All appliances will be checked to insure they are in

working order.

Safety Hazards: Not environmental specialists, inspectors are still able to

identify many hazardous conditions. They are able to perform radon

tests, usually for an extra fee.

Miscellaneous Issues: Inspectors will check roofs, decks, gutters and siding,

as well as garages. They determine if there has been or currently

suspect insect activity. If so, you may wish to have a separate pest

inspection.

Not Included: Radon can be tested at the time of the inspection, usually for an additional charge. Septic systems, lead paint and environmental tests are not included.

Working with an Attorney

Making an offer on a home should not be taken lightly. In addition to the care and advice of your

realtor, it is important that you seek legal representation from an attorney who specializes in real

estate law.

Purchase and Sale Agreement

As a condition to the Offer to Purchase, a date is given to execute a Purchase and Sale

Agreement. Generally, the Sellers Attorney will provide a draft P&S to both the attorneys

for the buyer and seller. The attorneys will make the appropriate addendums, protecting their

respective clients.

Title Search

Required by all lenders, the title search is generally ordered by the attorney handling the closing

for the lender. The examination should reveal any encumbrances, rights of way, liens, easements,

restrictions or any other issues that may prohibit the transfer of title.

Consummation

Most closings take place either at the Registry of Deeds or at the closing attorney’s office.

The buyers, sellers and their respective attorneys meet to execute the final closing documents.

In some instances parties will have executed a Power of Attor-

ney in place of attending. Among the myriad of documents will

be the Deed, Mortgage and Loan, as well as the Closing

Disclosure (CD). The CD is a full accounting of the fees

and costs inherent in the sale and must be reviewed 3 days pri-

or to the closing .

Going on Record

A final title exam is performed just prior to the recording of the documents to insure no last mi-

nute liens have been placed on the property. The pertinent documents are then recorded with

specific Book and Page numbers and the transfer of ownership becomes complete.

Closing Costs

When you apply for your loan, you will receive a Good Faith Estimate of Settlement Charg-

es and a detailed explanation of all costs. Do not assume that “no closing costs” covers all the

items mentioned below. Be sure to discuss these items with your lender or mortgage broker

early so that you are not surprised at the closing .

Loan Origination Fee: This fee covers the lender’s administrative costs in processing the

loan. This is a one-time fee often expressed as a percentage of the loan. The origination fee

is typically 1% of the loan; but remember, you can obtain a loan with no origination fee at a

slightly higher interest rate.

Loan Discount: Often called “points”, a loan discount is a one-time charge used to adjust the

yield on the loan to what market conditions demand. One point is equal to 1% of the loan

amount. This fee is fairly rare today since interest rates are so low.

Appraisal Fee: This is a one-time fee that pays for an appraisal, which is a statement of

property value viewed by the lender. The appraisal is made by an independent fee appraiser

and can cost $250 to $450 or much more depending on the home’s size and location.

Credit Report Fee: This one-time fee covers the cost of the credit report that is run by an

independent credit reporting agency and is usually about $30-$70.

Lender Fees: Other lender fees include an underwriting fee, a flood certification fee, an

amortization schedule fee, and other miscellaneous fees that should be disclosed by your

mortgage lender at loan application. These fees vary dramatically from about $450 to $900.

PMI Premium: Depending on the amount of your down payment, you may have to pay mort-

gage insurance (which protects the lender against loss due to foreclosure).

Attorney Fees: The closing attorney charges include document preparation, notary fees

and a settlement or closing fee and usually run between $500-$800.

Closing Costs Prepaid Interest: Depending on the time of month your loan closes, this charge may vary from

a full month’s interest to just a few days’ interest. If your loan closes at the beginning of the

month, you will probably have to pay the maximum amount. If your loan closes at the end of the

month, you will only have to pay a few days interest. Your first loan payment is generally due

the first of the 2nd month after you close, in other words, if your loan closes sometime in July,

your first payment would generally be due September 1st.

Escrow Account: Your lender will typically set up an account for property taxes and insur-

ance. This account will be started with taxes approximately equal to two months tax payment.

(In addition, if the next tax payment is due within 60 days, that amount will generally be paid at

closing.) Property insurance will be collected one year in advance. There may be a fee

charged if you waive escrows.

Title Insurance Fees: There are two title policies: a lender’s title policy (which is required to

protect the lender against loss due to defects on title) and an owner’s title policy (which is op-

tional, but protects you against any past defects). These are both one-time charges; the lend-

er’s policy is usually $2.75per thousand of the loan amount and the simultaneous owner’s and

lender’s policy costs approximately $4.00 per thousand of purchase price.

Title Search: The title examination is a one time fee and can range from $150 - $400. Ex-

tenuating circumstances could cause the charge to be twice that, but that is rare.

Document Preparation Fee: There may be a separate fee that covers preparation of final le-

gal papers, eg, a deed or trustee certificates. These charges run between $50 - $150.

Recording Fees:

Deed $125 MLC $65

Mortgage $175 6D $75

Discharge $ 75 Homestead $35

Note: This is just a guideline; be sure to confirm all charges with your mortgage broker or lender.

Our Family of Services

While you are under no obligation to work with our affiliated companies, we encourage you

to contact them to determine the best rates and products for you.

William Raveis Mortgage

Obtain a mortgage pre-approval before you begin to look for a new home. It will provide you

more bargaining power when you present your offer to demonstrate that you are already pre

-approved.

William Raveis Mortgage is a full-service mortgage banker., offering most types of mortgage

products including, but not limited to, conforming 15 & 30 year fixed rate mortgages, adjusta-

ble rate mortgages, jumbo, super jumbo, interest only, blended loans, second mortgages,

Home Equity Lines of Credit, new construction, land, FHA, VA, MHFA

loans.

For information, contact Frank Merola Executive Mortgage Banker

508-740-5922 or [email protected]

William Raveis Insurance Committed to providing customers with competitive rates, quality products, superior in-person

customer service, and innovative claims service, our insurance company offers a broad range of

insurance and financial products to provide you with competitive proposals for life, home, flood,

automobile, excess liability, valuable items and other personal insurance.

Our experienced, licensed professionals will research your risk potential and recommend the

appropriate coverage for protection of all your valuable assets. They understand the unique

and changing needs of our diverse customers and are dedicated to create products that serve

their individual needs.

We will work closely with REALTORS®, lenders and attorneys to ensure

smooth and timely closings.

For information, contact Timothy Hodgman Insurance Sales Director

508-967-4092 [email protected]

Title Insurance

Should you purchase Owners’ Title Insurance? It is a question we get asked quite

often. It, of course, offers you additional protection and is a one-time expense. We

encourage you to discuss this with your attorney and the closing attorney. Some of

the hidden risks may protect you against:

Forgery

Fraud (misrepresentation) in connection with the execution of documents

Undue influence (under pressure) on a grantor (Seller) or executor of a will

False impersonation by those purporting to be owners of the property

Incorrect representation of marital status of a grantor (Seller)

In some cases, undisclosed or missing heirs

Wills not probated

Mental incompetence of grantors

Conveyance of a minor

Birth of heirs subsequent to the date of a will

Inadequate surveys

Incorrect legal descriptions

Non-delivery of deeds

Unsatisfied claims not shown on the record

Deeds executed under false powers of attorney

Confusion due to similar or identical names

Dower or courtesy rights of ex-spouses of former owners

Incorrect indexing at Registries of Deeds

Clerical errors in recording legal documents

Delivery of deeds after the death of a grantor

Moving Checklist

Decide what to move and what not to

move

Plan a Garage Sale

Obtain estimates from several moving

companies or truck rentals

Transfer your bank accounts

Submit Change of Address to Post

Office

Obtain school records to make trans-

fer easier

Request medical records from doctors

and dentists

Close out local charge accounts

Draw up a floor

plan for the mover

to identify where

boxes should go

Arrange to disconnect existing utilities

Have the car serviced for the trip

Discontinue newspapers

Save the phone book for future

reference

Take all valuables, jewelry, im-

portant papers with you.

Pack an arrival kit with necessities

and medicines in case you arrive

before the mover

Save all moving related receipts

for tax purposes

Purchase moving insurance to cov-

er replacement cost

Ask for professional referrals from

your doctor and dentist

Arrange for temporary care of

your pets

Notes ______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

helping you find just the home for you · a raveis realtor explains “agency” to you and...

Documents