WHERE DOES MY EARNEST MONEY GO?- When you submit an offer on a property, you submit your “good faith” funds to the seller along with the offer. This check is deposited into a trust fund account at the title company who will be handling the transaction. The earnest money funds are held until closing day, and are applied to your loan and closing costs.
WHY WOULD I OFFER MORE THAN LIST PRICE? – The truth is, every real estate market is different. In our greater Boise area, we are experiencing a shortage of available homes in some areas, meaning there is much greater competition among buyers who are all vying for the same properties. In our market, if you come in too low with your offer, chances are that there may be other buyers who are also going to be submitting an offer. In this case, a “multiple offer” scenario is born, and the seller is under no obligation to respond to your offer if there are a handful of other offers from which to choose.
As your Agent, I will prepare and present the offer that you wish to present. Be prepared that if we are in a highly competitive area or in a multiple offer situation, our offer might be ignored or passed over unless it is high enough or good enough to get the seller’s attention and beat out the others. No one wants you to pay above asking price, but there are scenarios where offering list price or above is the only way to beat the competition.
8 BASIC STEPS OF HOME BUYING
- Search for the property.
- When you’ve found “the one” we submit an offer and begin negotiations.
- When the offer is accepted, you are “Pending” and we turn in all paperwork to the lenders, title companies, real estate brokerages, etc.
- You turn in your Earnest Money to the title company and we schedule the home inspection.
- We negotiate any repairs with the seller based on the inspection and the lender orders the appraisal.
- A lot of “behind the scenes” work is conducted to ensure all documents are ready to transfer ownership of the property from the seller to you.
- We do a final walk through to inspect the property prior to closing.
- We close on your home.
ADVANTAGES OF A BUYERS AGENT AGREEMENT – Entering into a Buyers Agency Agreement in Idaho has countless advantages. When you sign the agreement you are simply hiring a personal representative who, by Idaho law, must represent and respect your duty of care, confidentiality, and disclosure to the best of their ability. This personal representation is available at absolutely no cost to you. (The Seller’s Agent is responsible for paying the Buyer’s Agent fee.)
Working with us means you have a professional team devoted to protecting you. In today’s environment, one mistake in a real estate transaction can cost you thousands of dollars or worse the opportunity of not getting your dream home. It is another reason why a Buyer’s Agent Agreement is the best way to ensure that you are properly protected throughout the entire process.
As your Agent, our job is to leverage all of the resources, knowledge, tools, and experience we have in order to find you the perfect home within the time period you tell us. We will treat your purchase as if it were our own, giving you peace of mind knowing that every date and detail is being handled with care. This eliminates confusion, stress, and anxiety.
As a first-time homebuyer, having a Buyer’s Agent is an essential part of making sure that your experience is educational, enjoyable, hassle free, and, most important, productive.
LOAN PRE-APPROVAL – Few people can buy a home for cash. According to the most recent statistics, nine out of ten buyers finance their home purchases. Getting a pre-approval is important because it allows you to know which mortgage (lowest cost and best terms) is right for you. With certainty, you will know the mortgage terms are in your best interest and exactly how much home you can afford to buy.
WORKING WITH A LENDER – Your lender will provide a pre-approval letter that shows your buying power. You are free to visit as many lenders as you like but keep in mind that each one carries with it a new credit inquiry, which may show up on credit reports. Although the pre-approval is not a final loan commitment, it is provided to the Sellers when offering on a home. It demonstrates your financial strength and shows your ability to go through with a purchase. This information is important to Sellers since they do not want to accept an offer that is likely to fall through because financing cannot be obtained.
