National Buyer’s Agent Association Blog 

Before you make an offer on any property, there are some official documents that you should request. Never take the seller's word for anything. Make sure you get everything in writing. A Real Buyer's Agent can help you with this process.

Before you make an offer on any property, there are some official documents that you should request.  Never take the seller's word for anything.  Make sure you get everything in writing.  A Buyer's Agent can help you with this process.  There are a number of key aspects of the property that you should request official documentations on such as:

Determine the legality of the units.  The seller should provide documentation establishing the legality of all units, as well as their compliance with zoning laws and building codes.

Get copies of all licenses.  Check with local and state government agencies, and get copies of all necessary permits from the current owner.  Licenses might be necessary in order to rent out the property.

Ask for tax bills.  Get copies of all tax bills and evidence that they've been paid.

Examine rental contracts and other tenant related documents.  Never make an offer to purchase property until you have copies of all forms that completely document the rental terms of current tenants, as well as rents being charged.

Acquire all financial records.  The current owner should give you financial records that document annual income and expenses for the preceding 12 to 18 months, so that you can properly estimate cash flow and operating loss or expense.

Obtain estoppel certificates.  An estoppel certificate is a legal document sometimes required by lenders.  Renters must sign it to verify major points of the rental contract that exists between the current owner and the tenant.

Requesting these official documents before you make an offer can be really helpful to you in the future.

There are only about five types of insurance policies that offer protection for you as a homeowner, and only really two or three that you should really pay attention to. You need to be aware that the others exist to make sure that you don't end up with one of them.

There are only about five types of insurance policies that offer protection for you as a homeowner, and only really two or three that you should care about.  You need to be aware that the others exist to make sure that you don't end up with one of them.  Here are the five types of policies:

1.  Homeowners insurance- for owner-occupied properties only, the most coverage for your insurance money.

2.  Landlord- for properties that are renter-occupied, covers same as homeowners plus lawsuits against you for wrongful eviction.

3.  Condo- covers the contents of your place (your personal property) plus liability, but not the actual building.  Your HOA dues pay for a policy that covers property damage to the building.

4.  Special form- covers property that is either owner or renter occupied; low cost policy that offers much less coverage than the others.

It should be easy to choose the best insurance policy for your needs, but if you can't decide what's best for you, a Buyer's Agent can help you make the best decision; with the type of property that you own or rent.  Depending on the area you live in there may be specific hazzard insurance policies that are offered or required based on the area you live, such as Earthquake and Flood insurance.

Every homebuying transaction progresses a little differently, but there is a basic sequence of events you can expect to occur when you make an offer to purchase a home. Keep in mind that there may be some variations in the order and substance of the sequence based on your individual situation and/or the standard practices in your local area.

Every homebuying transaction progresses a little differently, but there is  a basic sequence of events you can expect to occur when you make an offer to purchase a home.  Keep in mind that there may be some variations in the order and substance of the sequence based on your individual situation and/or the standard practices in your local area.  You can get more information from a local Buyer's Agent.   Your buyer's agent will insure that you get an overall picture of the process involved in making an offer you .

1. You will tell your buyer's agent you'd like to make an offer to purchase the home.
2. Your buyer's agent will then interview the listing agent to check the seller's motivation level, particular needs or special issues.
3. Your buyer's agent will prepare & provide you with a CMA (Comparative Market Analysis), checking the most recent available market data specific to your property.
4. Your buyer's agent will formulate, present and explain to you a recommendation as to the price and terms you should offer.
5. You make the ultimate decision as to the details of your offer and communicate them to your buyer's agent.
6. You review the sellers disclosures, including pre-contract inspection reports, if any disclosures or reports are available.
7. Your buyer's agent may request a custom pre-approval letter from your mortgage professional, specific to the address of the property and the purchase price you are offering.
8. Your buyer's agent prepares the paperwork, and you sign the offer and accompanying papers.
9. You write the check for your earnest money deposit for inclusion with your offer. 
10. Your buyer's agent presents the offer, in whatever manner specified by the listing agent: in person to the seller and the listing agent, in person directly to the listing agent or to the listing agent via email or fax.
11. You wait and receive the seller's response: counteroffer, acceptance or rejection.
12. If the seller's response be a counteroffer, then you formulate and communicate your response:  counteroffer, acceptance or rejection.  The counteroffers can continue back and forth forever until either you or the seller accepts or rejects a counteroffer outright.

Unfortunately, there are are agents out there that don't have their clients best interests at heart. If you have the bad luck of being represented by one of these poor agents take action against them. Not just for how you have been wronged but so no one else has to go through what you did. The South Carolina Real Estate Commission my deny a license or take disciplinary action against an agent who is involved in any bad behaviors in the practice of real estate.

Unfortunately, there are are agents out there that don't have their clients best interests at heart. If you have the bad luck of being represented by one of these poor agents take action against them. Not just for how you have been wronged but so no one else has to go through what you did. The South Carolina Real Estate Commission my deny a license or take disciplinary action against an agent who is involved in any bad behaviors in the practice of real estate. 

Here are some reasons that an agent could loes their license or have disciplinary actions brought up aginist them:

1. Substantial misrepresentation
2. False promises likely to influence, persuade or induce
3. continued and flagrant misrepresentation or false and misleading promises through associated licensees or through any medium of advertising or otherwise
4. Bad faith, dishonesty, untrustworthiness or incompetency
5. Representing a broker or property manager without knowledge and consent of the employing Broker-in-charge or property manager-in-charge
6. Promising future profits from the resale of real estate
7. Making a dual set of contracts, written or otherwise, by stating a sales price higher than the actual sales price
8. Violating federal and state fair housing laws, forgery, embezzlement, breach of trust, larceny, obtaining money or property under false pretense, extortion, fraud, conspiracy to defraud or and felony involving moral turpitude
9. Failing to report notice of conviction of a crime
10. Failing to account for or remitting any monies which belong to others
11. Paying a commission or compensation to an unlicensed individual for activities requiring a license
12. Violating any law relating to a buyer's choice of attorney, insurance agent, title insurance agent or any other service provider
13. Failing to disclose the party(s) represented
14. Receiving compensation from a real estate transaction without the consent of all parties
15. Representing more than one party in a transaction without the knowledge and consent of all parties
16. Acting as both an agent and undisclosed principal in a real estate transaction
17. Accepting deposit money without informing the payor who will hold the money
18. Issuing a check in connection with real estate business which is returned for insufficient funds or closed account
19. Failing to disclose any material facts concerning a real estate transaction
20. Violating any provision of any of the rules
21. Violating any rule or order of the SC Real Estate Commission
22. Inducing a party to break a contract of sale or lease, listing agreement or buyer agency agreement
23. Engaging in action inconsistent with the agency relationship that other real estate licensees have established with their clients
24. Failing upon request to make all required records available to the SC Real Estate Commission

Finding a good agent, who is out to protect your rights is essential. Using a buyer's agent is taking another step to protect yourself.

Bad credit translate into financing rejections, high loan rates and failed deals. That's why real estate professionals need to educate themselves about the credit system and show prospective buyers the value of repairing their credit, if necessary, in order to qualify for a mortgage.

Bad credit translate into financing rejections, high loan rates and failed deals.  That's why real estate professionals need to educate themselves about the credit system and show prospective buyers the value of repairing their credit, if necessary, in order to qualify for a mortgage.  For borrowers, most credit reports contain inaccurate information.  There are many consumers who have mistakes on their credit reports serious enough to result in the denial of credit.  Consumer's rights are protected under the Fair Credit Reporting Act and this gives consumers the ability to correct, update, amend and take action regarding the contents of a credit report.  The Fair Credit Reporting Act also guarantees consumers accuracy, fairness and privacy in their credit reports.  The Act only protects consumers if they take action.  Credit bureaus report the information given by creditors and they don't verify them.  If an error occurs, the burden of discovering and correcting it rest on the consumer.  Here are some things that customers should do before they apply for a mortgage to make sure their credit reports are accurate:

1. Find out what's in their credit report file.
2. Dispute inaccurate information.
3. Dispute inaccurate items at the source.
4. Excise outdated information.
5. Protect credit identity.      

By doing this, you can make sure your credit scores are correct, so that when you are ready for a mortgage, you won't have anything to stop you.  You can also work with a Real Buyer's Agent when you are ready to purchase a home.  They can help you find the home of your dreams and they can make this big experience for you stress free.                                                                                                                                                             

There are pre-qualifications and there are pre-approvals when considering purchasing a home.

There are pre-qualifications and pre-approvals.  A pre-qualification is where you give a mortgage broker a set of credit scores, income, etc. and they give you back an interest rate and terms that the borrower you've described would qualify for.  A pre- approval is where the mortgage professionals previews your credit, your income and your assets and offers you a particular mortgage, putting the offer in writing in letter form.  It is important that you be pre-approved, not pre-qualified before you go out house hunting with your Realtor.

• You can make an offer as soon as you see the house that you like.  Most seller won't look at an offer to purchase their home that is not accompanied by a pre-approval letter.  If you see the house that you want and you don't have a pre-approval letter in hand, you will have to wait a day to get one and  you could end up losing your new home or wind up in a bidding war over it.
• You won't see homes way above your price range.  Once you are pre-approved, your mortgage professional will give you a purchase price limit.  Don't go looking at homes that are outside of your limit.
• You won't see homes that are way below your price range.  People who mistakenly assume that they can only afford a $150,000 house might get really depressed, disgusted and frustrated with what they can find in some markets.

A Buyer's Agent can help you through this simple process so that you won't stress yourself too much.

Many local and national non-profit orginizations have been created for the sole purpose of providing assistance to homebuyers. Many people may want to know why? They are non-profits and serving the community is what they do.

Many local and national non-profit orginizations (NPO) have been created for the sole purpose of providing assistance to homebuyers.  They are non-profits and serving the community is what they do.  Extensive research has shown that the economy and the community are benefited by increased home-ownership rates.  Some of the groups exists specifically to combat the predatory lending (the extension of mortgages on very oppressive terms to folks who are qualified for better loan terms) that has become prevalent among demographics known to be undereducated as to financial matters, including ethnic minorities and women.  NPOs offers down payment assistance; favorable financing terms; and extensive education, counseling and credit counseling.  Some NPOs also offer refinancing and advocacy for homeowners who have fallen victim to predatory lending.  NPOs offering assistance to homebuyers usually have criteria similar to government programs, but may not have quite as stringent maximums on income and purchase price.  The restrictions on lenders and loan programs might be even tighter with NPOs because they often have negotiated directly with a single lender or two to make these preferential mortgages available to their clients.  Regular banks now offer aggressive and attractive loan programs that they might offer you a lower monthly payment on a mortgage even if the interest rate is high.  Get pre-approved within and outside of the program and compare.  Working with a Buyer's Agent can be very helpful to you at this point. 

Here are three major nationwide NPOs doing this work:

• Acorn Housing Corporation
• NACA (Neighborhood Assistance Corporation of America)
• Nehemiah Corporation of America- are willing to help.  To find them, do a Yahoo! or Google search for non-profit homebuyer assistance programs.

You should get pre-approved for your mortgage at or around the same time as you assess your wants and needs. Working with a Buyer's Agent and your mortgage professional who have a pre-existing working relationship with one another can be helpful.

You should get pre-approved for your mortgage at or around the same time as you assess your wants and needs.  Working with a Buyer's Agent and your mortgage professional who have a pre-existing working relationship with one another can be helpful.  They will work with you and with each other to try to get you pre-approved for the sort of home you want and/or to manage your excessive desires for the property based on your financials.  Your home buying process should be done in a timely manner from the beginning to the end.  You will have a list to go by from step one to the end of the closing process; until you get the keys to enter your new home.  Then it is time for the house warming party.  So, when you start getting prepared to purchase your home, remember, everything is based on time.  Buying a home requires true commitment to your Agent and everyone that's involved.  Say a prayer and go with your gut feelings about what you want and don't want in your home.  This is your biggest investment, so you have to try to get exactly what you want in your home.  Try to get as much home as you can for the money that your are spending.  Make sure that you have all your funds available because once you start your home buying process, everything will go rather quickly if your finances are in order.  Remember, timing is everything.  Everything takes time and everything should be done in a timely manner.  It takes time to get pre-approve for a loan.  It takes time to get your finances straight.  It takes time to find the type of house that you want.  It also takes time to get your closing schedule and to get your closing done.  When all of this is taken care of, you can be ready to move into your brand new home with your family.  Take timing seriously because it is very important to you and your Agent.  Timing is crucial when purchasing a home. 

There are several universal material offer terms that you should know about when purchasing a home.

There are several universal material offer terms that you should know about when purchasing a home.  They are listed below for your personal information:

- Address- You would want the seller to know what property you'd like to buy.

- Purchase Price Offered - How much you are offering to pay the seller and how you plan to finance that amount.

- Earnest Money Deposit Offered - The seller can tell how serious you are in part, based on how much cash you are willing to deposit up front.

- Close of Escrow Date - When do you plan to close escrow?  This can range anywhere from 15 days to 60 days or more, if you need a mortgage in order to close the deal.

- Occupancy - When will you need the seller to be out of the property?  The same day you close escrow?  Or, will you allow a slower seller to do a rent-back, moving out a few days or weeks after closing of escrow and paying your prorated mortgage payment for everyday they stay in after closing.

- Personal Property Included/ Excluded - Are you asking the seller for anything that's attached to the property?  Furniture, appliances, plants, cars, etc.?  Are you asking them to take anything that is attached?

- Allocation of Closing Costs - Most contracts have a column or row of check boxes that lists the various closing costs, inspections, reports, and governmental requirements and designates which party to the contract buyer or seller- will pay which costs.

A Buyer's Agent can help you understand these terms better if you don't quite understand them.  All you have to do is contact one of our agents and they will be more than happy to assist you with any questions that you may have.

In many areas, you will need special permits regarding registration requirements before you can do certain things to your home.

In many areas, there are city and county regulations which may affect you as a homeowner.  Certain things like burglar alarm registration and eco-friendly low flow toilet and shower head requirements are some of the permits that you are legally required to get before doing certain things to your home.  There are rent control laws which might kick in if you eventually convert your home into a rental property.  All of these things should be disclosed by the agents before your deal is closed.  Information like this is usually not a deal breaker; but not knowing it can cause you problems in the years after the deal is closed.  If you don't receive information regarding local regulations which will affect you as a homeowner, ask your Realtor and take charge; go on your city and county website, and check the section for information geared to home buyers and homeowners.  This is exactly where Realtors go to get local regulation disclosures; this way you can get it from the horses mouth.  A Buyer's Agent will help you through this regulations requirement process.  Make sure that you get all the information that you will need to get the right permits for your home.  This can be easy or you can make it hard by not doing what the law requires.