Buying a Home

Representing You as a Buyers Agent

It is very important to Rachna that gets an understanding of who you are and what you are looking for. She will provide information on schools, neighborhoods and communities to help you find the area that best reflects your lifestyle and needs. With extensive knowledge about our local market she can quickly narrow down a few areas that you are likely to find your home at the price you want. Rachna will make appointments, preview homes with you and help you determine the pros and cons of each home. Rachna has access to the multiple listing service (MLS), a service that provides access to thousands of homes for sale. She can provide information and make appointments to see any property listed for sale. A home does not have to be listed by a Skyline agent in order to get detailed information or an appointment to view.

Once that perfect home has been found Rachna will do all she can to insure that you get the best deal and service and guide you through the negotiation, legalities and details of purchasing a home.

Rachna is a licensed professional with specialized skills. There are many benefits you receive from working with an experienced agent. She can provide you savings through knowledge. Once you start working with Rachna you will quickly realize how thorough, confident and trust worthy she is, alleviating most of the stress you may have.

Benefits of Home Ownership

There are many benefits of home ownership, from financial reasons to a sense of security. Financially you will save on your yearly personal income tax return. Many of the closing costs, mortgage interest and property taxes are deductible. Owning a home also helps you establish financial credibility. Home improvements and inflation will increase the value of your home, making homeownership a very profitable investment.

As a homeowner you have much more independence and more privacy than renting. You are free to paint walls, plant flowers, keep pets and anything else within legal bounds.

A home reflects its owner's values and lifestyle. Owning a home can provide you with a source of pride, enjoyment and satisfaction. Also being established in a community provides a sense of belonging, stability and security.

Beginning the Process

Organization is the key to finding the home you want while spending the least amount of time and energy. Find out how much house you can afford. Do this before you go house hunting. Rachna can help you determine how much of a down payment you can afford, along with a monthly payment.

Make a list of everything you want in a home. Is a master suite important? How many bathrooms? What about closet space? Do you need a yard for the kids and pets to play in? How about a fireplace or a bay window? Do you prefer a rambler or multiple-story house? Are schools or access to transportation important? Separate the essentials from the items you could do without and put them on the "A" list. Prioritize the rest of the items into a second and third list in order of importance. You will then go over the list with Rachna so that she is very clear on what you want and need in your home. Keep good notes as you look at homes. After a while, it becomes difficult to remember which features belong to what home. Some buyers take pictures as they go along.

When selecting a home, look beyond cosmetics. Make sure the home is in good physical condition and that you understand the cost of repairs. For more information on how to assess the home's condition, refer to the Home Inspection information on this website.

Look at additional homes, even if you love the first one you see. Many times, it takes looking at several homes before you find the one that is really right for you.

As your agent, Rachna will check with you regularly, even if you have not found a house that suits your needs. Keeping in contact with you allows us to establish a good rapport, and helps her learn how to help you effectively. Rachna will continue to be on the lookout for homes that suit your needs.

You can sit down with Rachna and discuss your needs, type of area, style of home, amenities and everything you really want in your next home. She can help you by accessing a 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. Rachna can guide you through the entire process.

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 agent will have many listings available that may not appear in the newspaper or Internet on a continuous basis. New listings come on the market daily.

Rachna has access to the multiple listing service. The information you will get when she looks up a home using this service is location, price, photographs, utilities, amenities, annual property tax, current financing (when assumable) and the listing company.

When Previewing a Home you will want to write notes so you will be able to discuss the details later with Rachna. You will also want to ask questions you may have regarding the home such as the construction of the home, electrical, plumbing, heating and cooling systems, the community, schools, shopping and transportation.

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

Purchase and Sale Agreement

Once you have found the home you want to buy, Rachna will work with you to complete a purchase and sale agreement. This is the contract in which you and the buyer outline the details of your property transfer. The purchase and sale agreement usually consists of the Earnest money receipt, Financing addendum, Inspection addendum, Conditions/disclosure addendum, Contingency addendum-when appropriate, Addendum outlining special conditions, Lead-based paint notification-when appropriate, Agency disclosure form and Property disclosure form completed by the property seller.

The Importance of a Home 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 the property they plan to buy or sell and your contract should include a contingency that you obtain a satisfactory inspection report. Talk with Rachna about the types of inspections available.

Useful tools to help finding a qualified Inspector are r eferrals from satisfied customers, referral from a local real estate agent or mortgage company, local consumer affairs office and 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.

It is common for buyers to make an offer contingent upon one or more home inspections, which the buyer arranges and pays for with the seller's consent. If the inspection findings are acceptable to you, the closing process can begin. If the inspection uncovers problems, your agent can provide valuable suggestions on how you might work with the seller toward a mutually acceptable resolution.

A home inspection should be conducted by a qualified professional. Rachna recommends that buyers be present when an inspection is performed so that the inspector can describe the process and findings to you personally. The Inspector should be looking for any structural, mechanical, and/or other defects in the property. He/she should also examine all systems, including heating, air conditioning, electrical wiring, and plumbing, spend time checking the exterior of the house, including the roof, foundation, and chimney, check the attic and interior for proper venting, insulation, and electrical outlets, test all appliances and plumbing fixtures to verify working condition, check all bathrooms to see if moisture has affected the areas around the tub or shower and inspect for other items such as insects, termites, and other pests.

When you are ready to complete a purchase and sale agreement on a home, your offer will generally be contingent on a professional inspection of the entire property, including improvements. The home inspector looks beyond the cosmetics to make sure that the home's general systems operate properly. The inspector will also look for large repairs that are needed and report on the condition of the home.

The standard home inspector's report will review the conditions of the home's heating and cooling system, interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; foundation, basement and visible structure. The inspector will also look for cracks in cement walls, water stains that indicate leakage and any indication of wood rot.

A home inspection also points out the positive aspects of a home, as well as the maintenance that will be necessary to keep it in good shape.

As your agent, Rachna is familiar with home inspection services and can provide you with a list of names from which to choose. Another good source for finding a home inspector is to ask a friend, or perhaps a business acquaintance, who has had a home inspection and can recommend a home inspector they were satisfied with.

Remember, no home is perfect. If problems are found, Rachna will help you negotiate through the process.

Appraisal – The Value of Your New Home

An appraisal is a professional evaluation of a property's monetary value, usually completed at the request of the lender and for the lender's benefit. Appraisers consider numerous factors such as square footage, construction quality, design, floor plan, amenities, energy efficiency, lot size, topography, view, and landscaping. Other issues appraisers take into account are neighborhood quality and a property's proximity to transportation, shopping, and schools.

Homeowners Insurance

Once you have found a home to purchase, you will want to protect your investment with insurance. Most buyers invest in a comprehensive homeowner's insurance policy, which provides coverage for fire damage, water damage, personal possessions, personal liability, vandalism, theft, and loss of use of the house. If you are financing your home purchase, your lender will require you to buy at least basic hazard insurance, which will fund the cost of rebuilding your home. It is important to contact your insurance professional early in the buying process. They will be able to advise you of their ability to provide coverage as well as to quote the rates and terms of the policy.

Settlement Costs - Who Pays What

During the negotiation stage of the transaction, a mutually agreed-upon date for closing is determined. "Closing" is when you and the seller sign all the paperwork and pay your share of the settlement fees, and the documents are recorded. Settlement obligations vary widely due to specific contract language, local laws and customs. Prior to closing, the closing agent (usually an escrow or title company or attorney) will complete a detailed settlement statement for both buyer and seller.

The Buyer Pays o ne-half of escrow or legal fees paid to the attorney or escrow company for preparing the closing, document preparation fees, recording and notary fees, title search and title insurance, local transfer taxes, l oan fees, appraisal fees and credit report fees.

Closing the Deal

At the closing appointment, you will review and sign final paperwork, and bring the balance of the funds will required for the down payment and/or closing costs. Once the closing papers have been executed and the deed recorded, you can take legal ownership of your new home. If either seller or buyer cannot attend, he or she can sign papers in advance, and/or grant power of attorney to a representative. The buyer will be asked at closing to sign the mortgage and any other papers that the lender, and/or other interested parties, may require.

The final stage of the transaction process occurs with the transfer of title from seller to buyer. After closing has occurred, the policy is sent to you by your title and escrow professional, the third party who transfers the money and documents (including title and deed) from the buying and selling parties. The escrow company prepares documents, draws up the closing statements, obtains necessary signatures, records documents, and receives and disburses funds.

Get Your Keys

Once you have been handed the keys to your new home on the agreed possession date, it is helpful to keep in mind that some practical and cosmetic matters need attention. Before you take possession of your new home, utilities will need to be changed to your name. And services such as electricity and phone may need to be reactivated. Also, check in with the nearest post office to assure proper mail forwarding. Consider hiring a cleaning service to thoroughly clean the home before you move in. And for security purposes, it may be prudent to change the locks and install a theft deterrent system.

Moving Guide

Click on the Moving Guide Checklist link for assistance on preparing to move.

Questions and Answers

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.

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. 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, origination fees, tax registration and title insurance premium.

What pages are generally included in the Purchase and Sales Agreement?
Generally included in the Purchase and Sales Agreement is the Agency Disclosure, Financing Addendum/Clause, Earnest Money Receipt, Inspection/Clause, Conditions/Disclosures Addendum, Contingency, Addendum Outlining Special Conditions, Lead-Base Paint Notification and the Property Disclosure Form (completed by Sellers).

What are the hazards of lead-based paint?
All buyers and sellers are required by law to receive and read a pamphlet outlining the hazards of lead-based paint for homes built before 1978. Be sure to ask your real estate agent for a copy.