BUYING A HOME LET US GUIDE YOU IN THE RIGHT DIRECTION
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BUYING A HOME
LET US GUIDE YOU IN THE RIGHT DIRECTION
“If I were asked to name the chief benefit of
the house, I should say: the house shelters
daydreaming, the house protects the
dreamer, the house allows one to
dream in peace.”
— Gaston Bachelard
Hiring the Wrong Real Estate Agents and the Wrong Team of Specialists When you buy a home, you are making one of the largest financial decisions of your life. Would you trust your entire retirement savings to a financial advisor without checking their credentials and track record? Why should it be any different with your home purchase? There are literally dozens of professionals you may need to successfully complete a real estate transaction. Choosing the wrong professionals could cost you thousands to tens of thousands of dollars, or worse, you could lose the deal or find yourself in a long, expensive lawsuit. Remember, an ounce of prevention is worth a pound of cure. Your best insurance against making costly mistakes is to educate yourself about the key elements in the home buying and mortgage process. Ultimately, you’ll need to have a clear plan, hire the right experts and make prudent, informed decisions based on up-to-date and complete information. Who should be the most important advisor when it comes to your real estate purchase? Your best strategy to avoid costly mistakes and find the best team of real estate experts is to hire a highly trained real estate agent who will act as your team quarter- back to help you select your team and have a clear, well-defined game plan across the entire home buy- ing process. You need someone to champion your best interest in all facets of the home buying process. A top real estate agent realizes most of their income will come from referrals from satisfied clients. In other words, top agents are highly motivated to represent your best interests otherwise they will not earn the right to represent you in the future or get your referrals. You should avoid agents who are only focused on a one-time transaction to earn a commission. PETERS TOWNSHIP • PITTSBURGH (BAKERY SQUAR
The amazing fact about hiring a real estate
brokerage firm and agent is most often it
doesn’t cost any more to hire a world class
Real estate agents are normally paid only upon the
successful completion of a home purchase (at the clos-
ing). This is important because you know you will have team than it does to hire an agent without
their complete attention to help you successfully com-
plete the purchase. Buyers often make the mistake of
any proven credentials or systems.
choosing an agent just because they know them per-
sonally or have been referred to them by a friend. Yes,
it’s good to trust someone and referrals from friends
are often a good way to identify possible real estate
agents to interview. However, people you know or re-
ferrals should just be the beginning of your due dili-
gence to selecting a real estate agent or any of the
many related professionals you may need to complete
a home purchase.
Your home purchase is a significant investment and
you deserve the most competent representation you
can find. In most professional fields you pay a higher
amount for proven experts and a lower amount for
newer or less qualified professionals. The amazing fact
about hiring a real estate brokerage firm and agent is
most often it doesn’t cost any more to hire a world
class team than it does to hire an agent without any
proven credentials or systems.
The shocking truth is the way the real estate industry
has been structured for decades has left buyers with-
out a standardized, complete and proven home buying
process that is solely focused on the best interests of
the buyer.
Although there are over 1.6 million real estate agents,
only a fraction of them can show you a proven process
to maximize the odds you are buying the right home at
the right price and the right loan at the right cost. If
your agent is going to act as your trusted advisor and
real estate team quarterback then be sure to ask
them questions to determine both their credentials,
systems and ability to select and organize the entire
team of specialists required to complete the home
buying process.
RE) • GREENSBURG • OFFICE : 724-941-1427
Home Ownership Advantages
Buy or rent? That is a dilemma facing many po-
tential homeowners today. It seems that buying a
home is more costly - and time demanding - than
renting a home. However, if you can afford to do
so, and you have plans to stay at your location for
a while, buying a home has significant advantages.
I will share many of them with your throughout this
book.
Financially, owning a home is often promoted as a
better choice than renting. Currently, there are
there for 6 months or a year, to get more com-
significant federal and state tax breaks: home-
fortable with the area. Rental properties are
owners can claim deductions for real estate prop-
mostly found in the local newspapers or Craigslist.
erty taxes and for the interest paid on their mort-
**Be sure to be careful when dealing with
gage each year. In addition, long-term homeown-
Craigslist. Don’t ever send money to someone to
ers build equity both by paying down their mort-
secure a potential property as you may never see
gage and when their home appreciates in value. In
them or the money again. (There have been a lot
Pittsburgh, we don’t have the great highs and
of scams going on like this). Also for safety rea-
lows as do other markets like California and Flori-
sons, meet them some where away from the
da, but we do have a very stable market. Many
house and let someone know where you are go-
savvy homebuyers increase their equity more
ing. What every buyer should know before purchas-
quickly by buying homes that need cosmetic im-
ing:
provements (such as decorating) rather than
structural renovation (walls need moving). These Property taxes and qualified interest are deducti-
minor (mostly cosmetic) improvements can in- ble on an individual’s federal income tax return.
crease the value of a home over a relatively short
Often, a home is the largest asset an individual
period of time with a modest investment.
has and is considered one of the most valuable
However, there are times when renting a home is investments available.
the more sound choice to make. For example, if Depending on your loan, a portion of each amor-
you are only going to be at your place for a couple tized mortgage payment goes to principal, which
of years, it makes no sense to buy the home, as is an investment.
this would be the more expensive endeavor. If
you buy or sell in a short period of time, you may A home is one of the few investments you can
actually lose equity. enjoy by living in it.
Also, renting may make good sense if you've iden- A REALTOR® can usually show you any home
tified the general area in which you want to live whether it is listed with an agency, a builder, or
but haven't made a final decision as to the specific even a For Sale By Owner.
neighborhood. If you don't know whether you'll
feel comfortable in a particular neighborhood, it Working through a REALTOR® to purchase a For
may be better to rent a house or an apartment Sale By Owner home can be very advantageous
PETERS TOWNSHIP
PITTSBURGH (BAKERY SQUARE)
GREENSBURG
CELL: 724-963-6134
OFFICE : 724-941-1427
because someone is looking out for your best inter- feedback and concerns about each home.
est. In most situations, the seller is willing to pay a
fee to a buyer’s agent. You will quickly and conveniently get a great home —
A homeowner can exclude up to $500,000 of taxable The advantage to signing a Buyer’s Agency Agreement is
capital gain if married and filing jointly, or up to that you will have a professional agent working to find
$250,000 if single or filing separately. The home and secure the ideal home for you. It is nearly impossible
must have been the taxpayer’s principal residence to find a home that meets your needs, negotiate a con-
for two of the previous five years. tract, and close the transaction without an experienced
agent. You won’t need to spend endless evenings and
As of May 07, 1997, there is no longer a requirement weekends driving around looking for homes or trying to
to purchase another primary residence more expen- search computer networks by yourself and clearly most
sive than the one sold. Homeowners are free to buy of the internet websites are not accurate. Many times a
up or down with no tax consequences assuming their buyer will call excitedly about a home that is already un-
gain is less than the allowable amounts. der contract. When you tour homes with your profes-
sional Buyer’s Agent, you will already know the homes
meet your criteria and are within your price range.
The Advantages of a
What is the Buyer’s Agency Agreement ?
Buyer Agency Agreement
Entering into a Buyer’s Agency Agreement has countless
Your interests are professionally represented — advantages. When you sign the agreement, you are
simply agreeing to “hire” a personal representative who,
Enlisting the services of a professional Buyer’s Agent is
by law, must represent your best interests to the best of
similar to using a doctor to help you with your health
his/her ability. All of this personal service is available at
care, an accountant to help you with your taxes, or a me-
absolutely NO COST TO YOU! The Seller’s Broker is re-
chanic to help you with your car. If you had the time to
sponsible for paying your Buyer’s Agent fee. Each com-
devote to learning everything about accounting, medi-
pany has a admin (additional) fee that keeps all of your
cine, and automotive mechanics, you could perform
files easily accessible. This is the only fee you will pay
these services yourself. But who has the time? This is
your agent at closing. You get a professional agent devot-
why you allow other professionals to help you in their
ed to protecting your needs and to helping you make one
specific areas of expertise. Trying to buy a home on your
of the most important investment decisions of your life.
own can leave you with many issues you just are not pre-
pared for.
A real estate agent takes care of the hassles of everyday Understanding Agency—
real estate transactions for you. We let you concentrate
on your full-time job, while we do our job. We will guide Who works for Whom?
you through the home-buying process and exclusively
Seller Agency (Single Agency)
represent your best interests as we help you find a home,
present your contract offer, negotiate, and close on your Agent will represent the best interests of the seller
home! Agent will owe the seller fiduciary duties
You get a personal specialist who knows your needs — Agent must give the buyer all material facts so that
the buyer can make an educated decision
Just as your doctor, accountant, and mechanic under-
stand your specific needs, your Buyer’s Agent gets to Buyer Agency (Single Agency)
know your real estate needs and concerns. This type of Agent will represent the best interests of the buyer
relationship is built through open communication at all
times. Your Buyer’s Agent will save you a lot of time by Agent will owe the buyer fiduciary duties
providing you all the details about any home before you Agent must give the seller all material facts so that
see it. In addition, your Buyer’s Agent will listen to your the seller can make an educated decision
Transaction Licensee (Dual Agency) 5. We’ll help you prepare your offer with the terms,
provisions, and addendums weighted in your favor
Agent represents both the buyer and seller equally
with your best interests in mind.
Agent’s objective is to facilitate a mutually satisfac-
6. We’ll present the offer on your behalf and negoti-
tory agreement among all parties
ate in your favor to help you secure the property at
Agent gives all options to the buyer and the seller the best possible price and terms.
Depending on the local market, all parties may be 7. We’ll negotiate a one-year Home Warranty on your
present at contract presentation to negotiate on behalf at no cost to you up to $600.
their own behalf
8. We’ll recommend extremely competent affiliates
All parties have confidentiality. Agent may do with respect to your total home purchase: legal
nothing to the detriment of either the buyer or the expertise, home inspection, appraisal, and title in-
seller. surance.
Both the buyer and the seller have a right to counsel. 9. We’ll be available for you to answer any questions
Before making any decisions, both parties have the you might have.
right to seek outside counsel. In all relationships, as
You agree to:
your Agent, we have a duty to act honestly with both
the buyer and the seller. 1. Seek pre-approval from a home lender prior to
viewing property.
2. Notify us of any listed homes you wish to view and
Buyer Agency Explained inform all other agents, For Sale By Owners, or
builders that you are being represented by Realty
We will provide you with the following services:
ONE Group Gold Standard.
1. We will assist you in securing the best financing
3. Formulate any offer on any home (new or resale)
program for your specific situation with the lowest
through us.
interest rate and least expensive closing costs. We
will then have a pre-approval certificate generated 4. You are not under any obligation at any time to
to give you the best competitive advantage in fu- buy or build a home.
ture negotiations from the lender. 5. Our fee, of 3.5% of the purchase price, will be built
2. We’ll provide you with regular updates from our -in as part of the purchase and sales
FREE Automated Home Search of all the new list- agreement. Any overages credited back to you.
ings that match your criteria. This will allow you to 6. This agreement expires one year from today’s
drive by and determine which properties you want date.
to see.
7. Acknowledge that the Broker is being retained
3. We’ll arrange a private showing of any home you solely as a real estate agent and not as an
wish to see including new construction, and For attorney, tax advisor, lender, appraiser, surveyor,
Sale By Owner property. structural engineer, home inspector, or any other
4. When you find a home you like, we’ll discuss the professional service provider. Buyer has been ad-
best strategy with you regarding offer price, financ- vised to seek professional advice concerning the
ing terms, interest rate, possession date, and any- condition of the property and legal, and tax mat-
thing else you want to know. ters.
PETERS TOWNSHIP
PITTSBURGH (BAKERY SQUARE)
GREENSBURG
CELL: 724-963-6134
OFFICE : 724-941-1427
Pre-approval Benefits and Facts and closing costs, as well as cash reserves. An FHA
loan requires a down payment of as low as 3.5% of
You know exactly how much home you can comfort- the cost of the home, while conventional home
ably purchase. (Eliminating wasted time looking at loans require 10 to 20%, depending on the loan pro-
homes under or over your price range). gram. If you receive money from a friend or relative
to assist with the down payment, you will need a gift
You get the best financing (i.e. lowest interest rate,
letter to prove that this is not a loan. In rural areas,
lowest down payment home loan and lowest month-
USDA financing is still available.
ly payment, which will allow you to get the most
house for your money) 3. Good Credit: Most lenders today reserve the lowest
You can make a stronger offer (You get the power of interest rates for customers with a credit score of
immediate action, you can beat out other buyers, 640 or above. Below that, borrowers may have to
and you can negotiate the lowest price and best pay a little more in interest or pay additional dis-
terms). Sellers also enjoy the comfort of knowing the count points to lower the rate. FHA loan guidelines
buyer is sincere in his/her home ownership goal and have tightened in recent months, too, so that bor-
has secured financing.
Typically, a mortgage preapproval is good for 60-90
days, after which time the lender may require an
update to the credit report or other exhibits within
the application file. Further, although the lender has
issued a credit decision in advance, nearly always it
will reconfirm the data which led to the initial deci-
sion. If any part of the financial picture has changed -
be it credit, income, or asset related - it is critical to
alert the lender of these changes so that the preap-
proval can be reissued or adjusted.
Getting Started is Free. First and foremost, familiar-
ize yourself with mortgage payments, and the fees
involved in getting a mortgage. Play with a mortgage
calculator to see what kind of monthly payments
you'd have, and use this same calculator to look at rowers with a credit score below 580 are required to
real time mortgage rates being offered from compa- make a larger down payment. Most lenders require
nies competing for your transaction. a credit score of 620 or above in order to approve an
What information do I need to FHA loan. Lenders will often work with borrowers
with a low or moderately low credit score and sug-
apply for a mortgage? gest ways they can improve their score.
1. Proof of Income: "No verification" or "no documen- 4. Employment Verification Your lender will not only
tation" loans are a thing of the past, so all borrowers want to see your pay stubs, but is also likely to call
need to be prepared with W-2 statements from the your employer to verify that you are still employed
past two years, recent pay stubs that show income and to check on your salary. If you have recently
as well as year-to-date income, proof of any addi- changed jobs, a lender may want to contact your
tional income such as alimony or bonuses and your previous employer. Lenders today want to make
two most recent years of tax returns. sure they are loaning only to borrowers with a
stable employment. Self-employed borrowers will
2. Proof of Assets: You will need to present bank need to provide significant additional paperwork
statements and investment account statements to concerning their business and income.
prove that you have funds for the down payment
5. Documentation Your lender will need to copy looking at homes on the internet can give you an idea
your driver's license and will need your Social of what is available, and what price range that type
Security number and your signature allowing the of home is in. Realize that different parts of town can
lender to pull a credit report. Be prepared at the dramatically affect the price of homes.
pre-approval session and later to provide (as
quickly as possible) any additional paperwork If you aren't as sure of what you want as the example
requested by the lender. The more cooperative cited above, looking at homes on the internet can be
you are, the smoother the mortgage process will especially valuable in just showing you what is availa-
be. ble. Looking at as many homes as possible online and
doing drive by’s of those properties is recommended
The Bottom Line Consulting with a lender before to get the best idea of what the market is like, and to
you start the home buying process can save a lot of decide what type of home and in what neighbor-
heartache later, so gather your paperwork or print hoods you would prefer buying.
some recent statements off your online bank ac-
counts before your pre-approval appointment and Once you are sure you are ready to buy, and ideally
before you begin house hunting. have already been pre-qualified for a mortgage and
have a good idea of the price range you are looking
How many houses should you at, you will be ready to look at homes in person.
look at before your buy? Again using the internet as a resource, buyers can
narrow down their list of homes they'd like to view. If
How many houses should you look at before you possible, find out the address of homes you are inter-
buy? ested and do a drive-by. Often this is enough to ei-
Many buyers, though especially first-time buyers, ther pique your interest further, or help you know
wonder how exactly to go about the home-buying the home isn't what you're looking for. Remember,
process. Specifically, many wonder how many homes never disturb tenants or homeowners by going onto
they should look at before deciding on the one right a property that is for sale without making an appoint-
for them. There isn't always one simple answer for ment with your Realty ONE Group agent first. A drive
that question, as it really depends on your needs, the -by is just that, driving by the home to get a feel for
specific market you are looking at, and a bit of luck as the neighborhood and to see some details about the
well. home and property that might not be obvious in any
pictures of it posted online.
In general, it is always a good idea to be familiar with
the types of homes available in various areas of your How many homes you look at depends, as I stated at
market, and the price ranges they are in. Looking at the beginning, on what is available, as well as how
homes on the internet is a good way to get started motivated you are to buy now. If you are in a hurry to
on this. While the small pictures and brief descrip- buy, and find a suitable home quickly, then you may
tions don't really tell you a lot about a home, they actually only end up looking at a couple of homes.
will give you a basic idea of what the type of home However, if you are taking your time to find just the
you are looking for is selling at. For example, if you right place, then chances are you will view far more
are looking for a newer home with three bedrooms in homes over a more extended period of time. Re-
a certain part of town, chances are that prices will be member, it is important to express all your wants and
similar for similar product. Variability in price comes needs to your Realtor. They will help weed out the
with quality, age, size, view and other factors, but homes that are most suited to you. While Realtors
PETERS TOWNSHIP
PITTSBURGH (BAKERY SQUARE)
GREENSBURG
CELL: 724-963-6134
OFFICE : 724-941-1427
will be happy to show you any and all homes you are in- room. Each home is unique, and another buyer could
terested in, it is prudent to keep your viewing relevant so come along and snap up your dream home if you don't
as not to waste your or your Realtor's time. act. That said, scheduling a second viewing on another
day, after you've had time to think about the home or
When deciding how many homes to view in one day, re- homes you think are closest to fitting your needs, is al-
alize that after seeing so many homes, they may all begin ways a good idea but sometimes if you sleep on it too
to blur into each other in your memory. The maximum long, you may lose to another buyer.
number of homes that can be viewed objectively in one
day is probably around 5-6, and even that is a lot. More So when determining how many homes one should view,
than that and it may become hard to remember details the only general rule I would give is to view until you find
about some of the homes. Taking notes on each address the right home. If you are new to buying real estate, this
visited is a good way to compare homes you've viewed might take a little longer, or it might not. No one wants to
and keep track of details that are important to you. buy an overpriced home, or a home with hidden prob-
lems, and many people feel like they need to shop
Because buying a home is such an important decision, around a bit until they understand the market. Of course,
many people are hesitant to take the plunge. But if you an experienced Realtor can help you avoid these pitfalls.
find the perfect home for you after viewing just a few So, in short, if you find a great home very quickly, then
homes, don't be afraid to go ahead and buy it. The real buy it and consider yourself lucky. If you are having a
estate market isn't like the consumer goods market hard time finding what you want, keep looking.
where there are a dozen of the same item in the stock-
The real estate market isn't like the consumer goods market where there are a
dozen of the same item in the stock-room. Each home is unique, and another
buyer could come along and snap up your dream home if you don't act.
Factors to consider in the neighborhood:
Look for access to major thoroughfares, highways,
and shopping.
Check with local civic, police, fire, and school offi-
cials to find information about the area.
Look at traffic patterns around the area during
different times of the day and drive from the area
to work.
Is the neighborhood near parks, places of worship,
recreation centers, shopping, theaters, restau-
rants, public transportation, schools, etc.?
The internet is your best source for neighborhood
information. Some towns or municipalities have
their own individual websites. Search google.com
for your town.
Won’t you be my Neighbor? New Construction
The Neighborhood—There are many factors to con- Do I need an agent?
sider when selecting a neighborhood right for you.
Newly Constructed or Renovated Buildings—Why use
Below are just a few of the many factors -- You may
an Agent to purchase a new home? The advantages of
think of others that are important to you. Please take
having an agent help you purchase a new home are
notes so they are not forgotten.
the same as those for purchasing a resale home…
Neighborhoods have characteristic personalities de-
Knowledge of the market
signed to best suit single people, growing families,
Help in finding the perfect home quickly
two-career couples, or retirees. Investigate to deter-
Expertise in contract writing/negotiation
mine if the neighborhood matches your lifestyle and
Closing assistance
personality. Scout out the Neighborhood! It is im-
portant that you scout the neighborhood in person. The builder may have a professional representative
You live in more than your house. watching out for his/her interests, and you need the
Talk to people who live there. same expert representation.
Drive through the entire area at different times of Buying a new home or newly renovated property is a
the day, during the week and on weekends. little more difficult and time-consuming than buying a
resale. We can professionally guide you through this
Look carefully at how well other homes in the ar- process.
ea are being maintained; are they painted; are the
yards well cared for; are parked cars in good con- It is very important your interests be professionally
dition, etc. represented when you are entering into a contract for
PETERS TOWNSHIP
PITTSBURGH (BAKERY SQUARE)
GREENSBURG
CELL: 724-963-6134
OFFICE : 724-941-1427a semi-custom or a build-to-suit home. These transac- scenario, many eager purchasers find themselves with a
tions are complex and the contract details must be exact real dilemma on their hands: Should they throw caution
in order to protect you and to ensure you get the exact to the wind and buy first, or play it safe and sell first,
home you want! even if it means that the property that they have their
hearts set on might be taken by the time they're really
REMEMBER – the Builder often requires that your ready to make an offer?
Agent accompany you on your first visit to the
Builder’s sales office in order for your representative For most people, having to pay two mortgages "even for
to participate in the process. a relatively short time period " would place a heavy strain
on their finances. But what if you fall head-over-heels in
Tips on when you should call love with a home and want to grab it right now, or if you
your buyer’s agent come across a home that is priced far below its real value
and decide you can't pass up such a great deal? Does it
CALL YOUR BUYERS AGENT WHEN YOU SEE A SIGN make sense to buy first? One way to try to obtain the
property is to make a "contingency offer," i.e. a purchase
We can show you properties listed by any broker in the offer that includes a contingency clause. A contingency
area. We can also assist you in “For Sale By Owner” trans- clause means that if another offer comes along before
actions! Remember that we can show you ANY available you've sold your current home, you'll have a short period
property, regardless of the real estate company that has of time (somewhere between 24-72 hours, depending on
it listed. You will receive daily updates with priority ac- the state) to drop the contingency clause and finalize
cess to all the homes that meet your buying criteria, free your offer. We have a Contingency that allows the seller’s
and with no obligation. You will receive instant email house to remain on the market as well, discuss with your
alerts on your home search, have the ability to save your agent. Contingency offers are more common in a buyer's
favorite properties & more with Pittsburgh's BEST re- market. The seller has little to lose because the seller re-
source to search the MLS! Enjoy this FREE service tains the right to force the buyer to drop the clause or
brought to you by Realty ONE Group Gold Standard. cancel the deal if a better offer comes along. Another
READ ABOUT A HOUSE IN THE PAPER way to buy first is to try to secure a bridge loan, in which
the lender allows you to begin payments only after your
Just circle the ads, drop off the paper by our office or fax/
current home sells.
email/text us, and we’ll find out all the details!
HEAR ABOUT A PROPERTY FOR SALE
How do I make an offer?
Give us a call, and we’ll search out the details for you!
Once you have found the home you wish to purchase,
WANT TO VISIT AN OPEN HOUSE you will need to determine what offer you are willing to
We would love to accompany you to tour a new home; make for the home. It is important to remember the
or we have guest passes just give us a call! more competition there is for the home, the higher the
offer should be – sometimes even exceeding the asking
WANT TO TOUR A NEW CONSTRUCTION PROJECT price. Remember, Be Realistic. Make offers you want the
By letting us help you with the builders, you get all our other party to sign!
services, as well as those offered by the builder . . . with-
out paying more. The builder is paying for you to have To communicate your interest in purchasing a home, we
representation; the project agent is there to protect thewill present the listing agent with a written sales agree-
builder’s interest only. ment. When the seller accepts/signs the offer it becomes
a legal binding contract. When you write an offer you
Do I need to sell before I buy? should be prepared to pay a hand money deposit. This is
to demonstrate your intention is to purchase the proper-
You've found the perfect home and want to snatch it up ty. The offer forms used are standard documents ap-
before another buyer comes along. There's just one prob- proved by our local Board of Realtors and the Pennsylva-
lem you haven't sold your own home yet. Faced with this nia Association of Realtors.After we present your offer to the listing agent it will Just a little patience. Relax. This could take a
either be accepted, rejected, or the seller will make a while.
counter offer. This is when we will negotiate the re-
maining terms of the contract if necessary. Be diplomatic. Because negotiations may be a
long and tedious process, it can be very easy to
Once an offer has been successfully negotiated and get irritated. Getting frustrated with negotia-
executed by both parties, the process of preparing for tions that seem to be going nowhere will only
closing begins. perpetuate any difficulties you may be having,
and may even result in an end to all talks. Keep
Negotiation Tips your cool.
Negotiating Guidelines Be aggressive. While you don't want to be hos-
tile, you do want to be assertive and dominate
The ability to negotiate successfully is crucial not
negotiations. When meeting with the prospec-
only for successful real estate transactions, but also
tive buyer or seller, be sure to try to take con-
for daily life events in general. When negotiating,
trol of the negotiations. Talk with a strong and
keep these rules in mind:
confident voice, and be sure to have responses
Challenge the ideas presented to you. Negotiating for any potential arguments that may be thrown
requires you to be assertive and question what you your way.
are being told. If you disagree with someone re-
Don't get nothing for something. Whenever
garding the price, value or condition, speak your
you agree to give something, be sure to get
mind. Of course, be sure to do so diplomatically.
something in exchange. For example, if you are
Become a good listener. Listening carefully and the seller and you agree to lower the price, you
critically thinking about what you are being told may want to hold back on any additional goods
can prevent a considerable amount of confusion that you may have initially been willing to give
and ensure that the negotiations run smoothly. away (like furniture).
Be prepared. If you're buying, what exactly Always give the appearance of being willing to
does the property have that could take away walk away. Even if you are in love with the
from its value? What is community like? What is property as a buyer or are dying to sell as the
the average selling price in the neighborhood? owner, never reveal your desperation. Always
If you're selling, know your property extremely give the impression that you will be willing to
well; you cannot allow yourself to be taken walk away.
aback by what a prospective buyer might say.
Time is on your side. It's most likely you and the
Aim high. If you're selling, try marking the other party are eager and pressured to resolve the
price of your home about 5% above what you transaction. Acting calm and under control, in addi-
would actually want. This will leave you some tion to taking time to think rationally, will help you
negotiating space to come down. If you're a in the long run. In short, just think before you
buyer, offer a price lower than what you nor- speak.
mally would; enter negotiations with the opti-
mistic attitude that the seller will come down.
PETERS TOWNSHIP
PITTSBURGH (BAKERY SQUARE)
GREENSBURG
CELL: 724-963-6134
OFFICE : 724-941-1427Home Inspections and why you tips for maintenance, and a lot of general information
that will help you once you move into your new home.
should always have one when Most important, you will see the home through the eyes
you buy a house of another objective third party. NOTE: Your agent may
or may not attend the inspection as this is your time with
If you are purchasing a resale property, we highly recom- the inspector. Only the names included on the sales
mend that you have a professional home inspector con- agreement may attend the inspection.
duct a thorough inspection. The inspection will include
but may not be limited to the following: Additional and optional inspections
Appliances (depends on inspectors)
Plumbing
Electrical
Air conditioning and heating
Ventilation
Roof and Attic
Foundation
General Structure
The inspection is not designed to criticize every minor
problem or defect in the home. It is intended to report
on major damage or serious problems that require repair.
Should serious problems be indicated, the inspector will
recommend that a structural engineer or some other pro-
fessional inspect it as well.
You home cannot “pass or fail” an inspection, and your
inspector should not tell you whether he/she thinks the Get a Pest Inspection
home is worth the money you are offering. The inspec- In addition to the general inspector, it's wise to hire a
tor’s job is to make you aware of repairs that are recom- licensed pest inspector, who will create a special pest
mended or necessary so that you can continue to make report on the property (unless the seller has already com-
an informed decision. missioned one -- pest inspectors, unlike general inspec-
tors, traditionally accept work on properties they've in-
The seller may be willing to negotiate completion of re- spected, so they have every interest in finding problems).
pairs or a credit for completion of repairs, or you may The pest inspector will look for infestation by wood-
decide that the home will take too much work and mon- boring insects such as termites and flying beetles, as well
ey. A professional inspection will help you make a clear- as evidence of dry rot and other fungal conditions. Some
headed decision. In addition to the overall inspection, general contractors are also licensed pest control inspec-
you may wish to have separate tests conducted for ter- tors, but they will normally charge extra for doing double
mites or the presence of radon gas. duty. Be sure you get a written report of all inspections.
In choosing a home inspector, consider one has been cer- Radon Test
tified as a qualified and experienced member by a trade Radon is a colorless, odorless, tasteless radioactive gas
association. I recommend being present at the inspection that's formed during the natural breakdown of uranium
and hiring an inspector that is familiar with the type of in soil, rock, and water. Radon exits the ground and can
property you are intending to purchase and its immedi- seep into your home through cracks and holes in the
ate surroundings. You will be able to clearly understand foundation. Radon gas can also contaminate well water.
the inspection report, and know exactly which areas need Health officials have determined that radon gas is a car-
attention. Plus, you can get answers to many questions, cinogen that can cause lung cancer. Studies show that
radon is more of a risk to smokers, but nonsmokers havea slightly elevated chance of developing lung cancer Well Drinking Water Test
when radon levels in the home are high. The only way Water quality testing is especially important if you’re
to find out if your house contains radon gas is to per- buying a home with a private well: water that comes
form radon tests. from a well dug in the ground on the property (and not
from a public water pipe). A water test can confirm
The Environmental Protection Agency, EPA, recom- whether harmful contaminants are in your private wa-
mends you install a system to reduce radon gas in your ter well. And with the various micro-climates, geology,
home if the level of gas is 4 picocuries of radon per liter farms, and livestock in the Kalispell area and through-
(pCi/L) or higher. out the Flathead Valley, it’s important to make sure
your water is safe. There’s also another reason to test
Septic Test your private water well source.
We highly recommend that you have a septic system
inspection performed before purchasing a home. This Lead Based Paint
protects the buyer from potentially purchasing a home Lead-poisoning problems can arise, particularly among
that may require costly repairs or a costly replacement children, who may eat bits of flaking paint or breathe
system. In most cases where a home has been vacant paint dust. Dust can get on surfaces; it makes its way to
for 7 days or more a Hydraulic Load Test will need to children's hands and can potentially be ingested.
be performed. This test takes 3 days to perform and
must be completed before the inspection can be per-
formed. A Hydraulic Load Test is the process of induc- How to pack like a professional
ing water into the septic system to verify that the sys-
tem is able to withstand normal everyday use. 1. Pack yourself: You can save a lot of money if
you do the bulk of the packing on your own.
Limit yourself to non-fragile items such as
books, linens, clothing and shoes; and re-
placeable items such as plates, dishes (not
fine china or expensive silverware), and
small kitchen appliances. These items will
be cheaper to replace in case of damage as
opposed to hiring workers for the extra la-
bor. Leave the furniture, mattresses, and
heavy appliances to be packed by the mov-
er.
2. The light boxes: the smaller the box it
should occupy. Don't toss everything into
one huge box. It will make the hauling much
more difficult. A good rule of thumb is if you
can't lift the box easily, it's too heavy! Keep
the weight of the box under 50lbs and re-
member to always lift with your knees, not
your back.
PETERS TOWNSHIP
PITTSBURGH (BAKERY SQUARE)
GREENSBURG
CELL: 724-963-6134
OFFICE : 724-941-14273. Don’t let the movers pack: your jewelry, family tional costs. However, if you agree to use used
heirlooms, or other priceless items. Should boxes, they may give them to you for free.
they be lost or damaged, the insurable value Professional moving companies use only stur-
will not come anywhere near the value you dy and reinforced cartons. Although the boxes
would place on them. Such items include jew- you can obtain from your neighborhood su-
elry, sports memorabilia, photo albums, and permarket may be free, they are not nearly as
various hobby collections. Pack these items strong or padded. They are more susceptible
yourself and take them with you, either in the to causing damage to your valuables in transit.
car or as carry-on luggage if size allows. Keep in mind that movers are not liable for
items they didn't pack.
4. Get the proper boxes for your items: the right
sizes and strengths. Have enough wardrobe 7. Disconnect appliances: movers will not discon-
boxes, as they'll save you ironing time later. nect your major appliances. Before the mov-
You can pack t-shirts and jeans in suitcases ers arrive to pack and load, unplug and prep
and regular boxes but you don't want to pack your refrigerator, dishwasher, stove, washer
your fine clothing such as suits or dresses in and dryer. Also prep your computer and back-
the same place. Save space by tossing in shoes up your important files.
at the bottom of the wardrobe box, but be
reasonable. Don't let the box become too 8. No plants or pets: movers will not move living
heavy or susceptible to fallout from the things such as your plants or pets. If you do
bottom. Purchase the padded dish boxes with not wish to give them away, don't forget to
dividers to protect your fine china. For your prepare them for the move. They will need a
replaceable and non-fragile items, save money "plant/pet suitcase" of their own.
by using the free boxes that you can obtain
9. No hazardous materials: Movers will not
from supermarkets and wrapping the items in
transport or allow you pack hazardous materi-
old newspaper.
als. These items include: paint, thinners, sol-
5. Pack everything carefully: It is important for vents, oils, varnishes, firearms and ammuni-
you to buffer and separate the fragile items tion, bottled gas, propane, lamp oil, anything
that you pack with old newspaper, bubble flammable, explosive or corrosive, motor fuels
wrap, sheets, blankets, pillows and towels. and oils, nail polish remover, bleach and aero-
Wrap each fragile item separately. Fill in emp- sol cans. Also note that spilled sesame oil
ty spaces to minimize movement during trans- leaves a terrible stench on nearby items.
it. Pack plates and glass objects vertically, ra-
10. Keep smaller boxes together: Make the loading
ther than flat and stacked. Purchase strong
process easier and more organized by desig-
tape- not masking tape but either duct tape or
nating a room in your home/apartment, pref-
the plastic and strapping tape that movers
erably the one closest to the door, in which to
use.
place all of your boxes. Keep related boxes
6. Protect your valuables: movers are required to together since they'll end up in the same
inspect each box tendered for shipment. Im- room. This will help cut on the carrying time
mediately point out to your mover each and and make the move much more efficient.
every box that you packed yourself, especially
if they're fragile or valuable. The mover will
advise you on whether the boxes need to be
repacked in sturdier, more appropriate boxes.
They have the right to refuse to load any box
they deem improperly packed. Any improperly
packed boxes must be repacked either by you
or the mover. All repacking services are addi-What happens once you mitment date as spelled out in your ASR and will pre-
pare and send a written request for extension to the
are “under contract: seller’s attorney if the commitment cannot be obtained
by the agreed upon date.
What is happening behind the scenes
Title exam - The closing company will ensure that the
The following is an overview of what is happening be-
seller will be able to convey “a clear and marketable
hind the scenes from the time you contract to buy your
title” to the property as stipulated in the Offer to Pur-
property until the day it closes.
chase and reiterated in the ASR. This becomes the ba-
Earnest Money/Hand Money/Escrow Money - Typical- sis by which the closing company is able to certify title,
ly, the buyer’s agent will deposit your earnest money in thereby making it possible for title insurance to be pur-
an escrow (neutral) account. The disposition of any chased. Your lender will require that you purchase title
earned interest will be negotiated by the attorneys and insurance, which will be arranged for you and appear
the agreed upon terms will be included in the as a closing cost on your settlement sheet (HUD1 State-
“Deposits” paragraph of your Agreement of Sale (ASR). ment/CD). We would be happy to discuss the im-
portance and benefits of purchasing an owner’s policy
Document Review - If you are purchasing a condomini- as well.
um, your closing company will review relevant docu-
ments and information such as the Master Deed, Dec- Smoke and Carbon Monoxide Detector/Occupancy
laration of Trust (condominium by-laws), operating Inspection - In order to comply with state law as refer-
budget, financial statements, and meeting minutes enced in the P&S, the seller must provide a certificate
(when available). For single and multi unit buildings, of compliance at closing stating that the property has
your closing company will review documents available properly installed smoke and carbon monoxide detec-
at the Inspectional Services Department (ISD) in order tors. The buyer agent will be in communication with
to verify the legal use and occupancy of the property as the listing agent to arrange for the local municipality to
it has been represented by the listing agent. inspect the premises in order to obtain the necessary
documentation, which will be delivered to the closing
Mortgage Approval - There are two components of attorney.
this process that will require facilitation by the partici-
pating agents. The first is the appraisal. Your lender Certificate of Non-Assessment (6D Certificate) - When
will hire an approved appraiser who they consider to purchasing a condominium, you will need legal docu-
be a neutral third party. This appraiser will visit the mentation that the current owner has no financial obli-
property and prepare a detailed report determining its gation to the association as of the closing date. To this
fair market value. The listing agent will provide access end, and per the terms of your ASR, the seller will pro-
to the property, yet has no input or influence into the vide at closing, a notarized statement that has been
final outcome. In the case of a condominium, there is signed by a trustee of the condominium association
often a questionnaire to be completed by the Manage- reflecting a zero balance.
ment Company or a trustee of the condominium asso-
Insurance - If you are purchasing a condominium, your
ciation. We will track this process so that there are no
closing company and lender will require proof that the
delays in obtaining a timely mortgage approval. Your
association carries adequate insurance (the premium
closing company will be mindful of the mortgage com-
PETERS TOWNSHIP
PITTSBURGH (BAKERY SQUARE)
GREENSBURG
CELL: 724-963-6134
OFFICE : 724-941-1427for which is included in the condominium fee). This proof property if you fail to make the payments.
comes in the form of a certificate of insurance, which
names you and (when applicable) your lender as loss pay- At closing, you will be required to pay all fees and closing
ees. We will either coordinate this process or verify that costs in the form of “guaranteed funds” such as a Cash-
your lender is ordering it directly. If you are purchasing a ier’s Check. Your agent or escrow officer will notify you
building, you will be responsible for purchasing your own of the exact amount at closing.
hazard insurance, and if a lender is involved, proof of that
policy must be provided to the lender or lender’s attor-
ney prior to the closing.
Municipal Lien Certificate - The lender’s attorney (or buy-
er’s attorney when there is no financing involved) will
order an MLC from the appropriate municipality. This
certificate will reflect any outstanding taxes or taxes that
have already been paid so that the proper adjustment
can be included on the settlement statement at closing.
Final Water Reading - In the case of a single or multi unit
building, a certificate from local water company stating
the account balance, is required at closing.
Pre-Closing Walk-Through - The final walk through is usu-
ally scheduled within 24 hours of the closing. This gives
the buyer a chance to ensure that the sellers have moved
out and left the property “broom-clean” and in substan-
tially the same condition it was at the time the offer was What is an Escrow Account?
made. If any repairs were to be done prior to closing, this An escrow account is a neutral depository held by your
gives the buyer an opportunity to confirm that they were lender for funds that will be used to pay expenses in-
completed before the property changes hands. In the curred by the property, such as taxes, assessments, prop-
case of new construction, there may be an additional in- erty insurance, or mortgage insurance premiums that fall
spection in order to generate a “punch list” which will due in the future. You will pay one-twelfth of the annual
usually result in a final walk-through just before closing. amount of these bills each month with your regular mort-
gage payment. When the bills fall due the lender pays
What is a Real Estate Closing? them from the special account. At closing, it is usually
A “closing” is where we meet with some or all of the fol- necessary to pay enough into the account to cover these
lowing individuals: the Seller, the Seller’s agent, a repre- amounts for several months so that funds will be availa-
sentative from the lending institution and a representa- ble to pay the bills as they fall due.
tive from the title company, in order to transfer the prop-
erty title to you. The ASR you signed describes the prop-
erty, states the purchase price and terms, sets forth the
method of payment, and usually names the date and
place where the closing or actual transfer of the property
title and keys will occur.
If financing the property, your lender will require you to
sign a document, usually a promissory note, as evidence
that you are personally responsible for repaying the loan.
You will also sign a mortgage or deed of trust on the
property as security to the lender for the loan. The mort-
gage or deed of trust gives the lender the right to sell theary capacity, the agent is legally obligated to maintain
an alliance of confidentiality, loyalty and obedience.
They must also provide their client with full and com-
plete disclosure.
Q. What are transaction/admin fees?
A. Transaction/admin fees are additional charges paid
by the buyer and/or seller at closing to help brokerage
companies defray office expenses. In PA, the majority
of brokerage firms now charge transaction fees of up
to $750 in addition to commissions, and this trend is
spreading throughout the U.S. At Realty ONE Group
Gold Standard, our fee is $395.
Q. How do I find a reliable closing company, building
inspector, architect, engineer, appraiser, mortgage
broker, insurance agent or title company?
Frequently Asked Questions A. You may, of course, ask your friends and relatives
who they "know." However, an experienced profes-
Q. What do your outstanding real estate services sional in a related industry is generally the best source
cost? for referrals because of their experience and interac-
A. In the United States, it is traditional for real estate tion with these service providers on a day-to-day basis.
brokers to be compensated by the seller or landlord (NOTE: Realty ONE Group Gold Standard provides the
upon closing of the transaction. Because our fee is al- names of several competent professionals in each cat-
ways included in the offer to exchange, option, lease or egory for our clients. We even provide some of these
purchase the property you select, our exceptional ser- services at reduced rates through direct business affili-
vices can be enjoyed without any additional cost at ations or associations with no obligation for you to use
all. their services).
Q. What's the difference if I'm a client or customer? Q. Your company offers an "unlimited property selec-
tion." Can't I get that from any REALTOR®?
A. A client engages the professional services of an
agent for the protection of a fiduciary relationship and A. Because of reciprocal agreements for compensa-
the promotion of the client's personal interests. A cus- tion and ease of access, generally REALTORS® will show
tomer is one who is sold something. Customers have only the offerings from their own Multiple Listing Ser-
no legal relationship of trust or confidence to protect vice. This means that you will not be able to select
them nor do they have anyone to promote their per- from For Sale By Owner properties (FSBO's) or other
sonal interests. private sales, foreclosures, probate, tax or sheriff sales,
nor property offered through attorneys or other inter-
Q. What's a fiduciary relationship? mediaries -- all of which are known in the trade as un-
A. This is a special relationship of trust established by listed properties. Realty ONE Group Gold Standard pro-
law, similar to the relationship one maintains with an vides access to both listed and unlisted selections.
attorney or accountant. When an agent acts in a fiduci-
PETERS TOWNSHIP
PITTSBURGH (BAKERY SQUARE)
GREENSBURG
CELL: 724-963-6134
OFFICE : 724-941-1427Q. What is "one-stop shopping?" any residence of equal, greater or lesser value and do the
same thing again -- indefinitely. In theory, one could re-
A. After locating and researching the property you want
side in a new home every two years that appreciates in
and negotiating the best possible price and terms, several
value without ever paying any capital gains tax (as long as
other things must be accomplished in order to complete
the limits of $250,000 or $500,000 are not exceeded).
the purchase. Realty ONE Group Gold Standard can assist
This is by far the best tax break and potential estate
in obtaining better rates on and coordinating all aspects
builder for individuals and married couples available to-
of the purchase, including the financing, inspections/due
day.
diligence, title insurance, property insurance, closing
agents/attorneys and whatever else is necessary to as- Q. What are the requirements for financing for non U.S.
sure a successful closing. citizens?
Q. What is a "tax-free exchange?" A. The Loan to Value Ratio (LTV) varies between lenders,
as do the interest rates. If you have a minimum of 20 to
A. The U.S. tax code allows for a tax-free exchange of
25% cash, you are generally required to provide three
"like kind" properties under Section 1031. In order to
letters of reference from professional and/or business
qualify, specific criteria must be met. A closing company
associates (including an accountant's letter verifying your
will guide you through this process which permits defer-
income in U.S. dollars for the past two years). You will
ral of any taxable gain indefinitely. This benefit allows
also need a copy of your bank statement and/or any ac-
you to build your estate by purchasing increasingly more
count with assets showing the past two months activity.
valuable properties while using dollars that otherwise be
You need to bring identification (e.g., a passport) and
lost in capital gains taxes. No one knows how long the
open a U.S. bank account. The U.S. account should have
Federal government will allow this boon. If you presently
enough cash for the down payment, closing costs and
own any type of property anywhere in the U.S. (other
three months insurance, taxes and maintenance. With
than your personal residence) please tell us about the
some lenders, putting down 30% or more may simplify
property, and we will be happy to explain your options.
the process.
Q. What about capital gain taxes on my personal resi-
Q. Why will Realty ONE Group Gold Standard provide
dence?
more in-depth property research than other brokers?
A. Probably the most advantageous investment today is
A. We represent you at all times and we will assist you
your personal residence. Besides having a place to live
through all parts of the purchase of the property. We can
that you enjoy, new changes in the U.S. tax laws allow a
include reverse market analyses to ensure that you are
single person a gain of up to $250,000 (and a married
getting the best possible deal. We will guide you through
couple up to $500,000) without payment of any capital
multiple offers and help to give you the best possible op-
gain taxes. In order to qualify, this home must be your
portunity to secure the home of your dreams.
primary residence where you have lived during two of
the last five years. After selling, you do not need to pur-
chase another home. You may, however, choose to buyReasons to Buy a Home
1. Quality of Life
2. Tax Deductibility of Mortgage Interest
3. Tax Deductibility of Property Taxes
4. Appreciation Potential
5. Deferred Gain and Capital Gain Treatment
6. Once in a Lifetime Exclusion
7. Principal Accumulation
8. Pride in Your Home
9. No Landlord
10. Leverage (where else can you buy this size of an investment with 5-10%
down)
11. The Real Cost of Renting (At $700 per month, with a 6% rental increase
per year, you will pay $110,719 over a 10 year period.)
Making Us Make Your Move Stress-Free
Let us take the stress out of moving. We can provide you with referrals for:
Movers
Painters
Plumbers
Electricians
Contractors
Handymen
Maid Services
Interior Decorators
Landscapers
Pool Maintenance
PETERS TOWNSHIP
PITTSBURGH (BAKERY SQUARE)
GREENSBURG
CELL: 724-963-6134
OFFICE : 724-941-1427You can also read
