Brandon Hoffman, Group Owner|Broker, 803-528-3336, HoffmanGroupRealty@gmail.com
Whether you are a first time home buyer, purchasing your second or third home, buying an investment property or investing in a vacation home, buying is a huge decision. It can be one of the most rewarding and one of the most stressful experiences a person can have. Navigating the tricky waters of buying a home is no easy task. But, a good real estate agent can help. As you go through the buying process, you will normally take the following steps:
- Determine your goals
- Get pre-approved for a loan
- Find a good real estate agent
- Find your dream home
- Negotiate and strike a deal with the seller
- Lock down the financing
- Finalize the deal
#1 -The biggest and most common buyer mistake? Not hiring a good agent.
Most buyers shop for homes and then call the agent on the sign. That’s a great way to do it – if you don’t care who represents you on the largest transactions you might ever make.
Fortunately, it usually doesn’t cost anything to hire a Realtor. Agents can provide access to any home on the market, save time and reduce stress with their systems, prevent mistakes with their experience and knowledge, and save money with their negotiation skills.
How can a buyer find agents?
Buyers can find agents on the internet, by asking friends and family, open houses, or simply calling agents on signs. Once a list of agents has been identified buyers should then schedule interviews. HoffmanGroupRealty@gmail.com
What questions should buyers ask agents when interviewing?
1. How many homes have you sold in your career and in the last 12 months?
2. Will I have to sign an agency agreement?
3. Will you give me a written cancellation agreement?
4. What systems and staff do you have in place?
5. How much do you normally save the buyer in negotiations?
Lastly, hire someone that is courteous with good communication skills. Nobody, including other agents, want to work with a jerk that only complicates the process.
How can a buyer find homes?
1-Internet and MLS Searches
2- Open Houses, Yard Signs, and Fliers
3-A Real Estate Agent
What should a buyer offer? Buyer Myth #9 – You should always start low.
If a property is well priced and interests you, it probably is interesting other buyers as well. We suggest:
1. If a buyer has time to wait for a deal and the property isn’t attracting interest offer low.
2. If a buyer has a time deadline or the property is attracting interest offer asking price or close to it.
3. We don’t know seller motivation, the only way to find out is to make an offer.
Financing Options
1-Conventional Loan – 15 0r 30 year fixed rate, normally requires a 5% down payment. PMI until 20% equity in home is achieved.
2-FHA – Fixed rate with PMI for life of loan but only 3.5% down payment, typically has lower interest rates
3-State Housing Grant – For buyers that haven’t owned a home in 3+ years, provides forgivable down payment grants.
4-Palmetto Hometown Heroes – Version of State Housing Grant providing larger down payments for buyers in certain occupations.
5- VA Loan – 100% financing with no PMI for eligible active or retired military. (Cash back rebates for those with 803 Home Sales Team).
6-USDA Rural Housing – 100% financing for eligible properties and buyers.
How can a buyer get a deal?
1. Pre-approval from a reputable lender.
2. Keep the offer simple, consider an as-is offer.
3. Focus on what’s important to you.
4. Be flexible on terms important to the seller that don’t impact you.
5. Put down more earnest money.
6. Hire the 803 Home Sales Team!
Contingencies protect the buyer but can weaken an offer to a seller -some are already in the contract.
1. Financing
2. Appraisal
3. Inspections
4. Selling/Closing Another Home
5. Other (Fence Approval/ Disclosures/ Covenants & Restrictions/ Parent Approval)
The Closing Process – Inspectors, Lenders, and Attorneys
Inspections are intended to very structural integrity and safety of a home, not to point out cosmetic imperfections. Inspections are always recommended.
1. Home Inspection – Inspect safety/condition issues (plumbing/electrical/mechanical)
2. CL100 Inspection – Wood destroying pests and fungi, water damage to exterior
3. HVAC Inspection – Heating, ventilation, air conditioning, and ductwork
4. Other (pool/ well/ septic/ lead based paint/ etc)
Lenders – Be honest with them up front or you’ll run into issues during the approval period that could cost you money. Everything you tell the lenders must be verified with documentation. Lenders are responsible for:
1. Ordering the appraisal
2. Document review
3. Upon final approval sending the loan package to the attorney
Attorneys typically represent the interest of the buyer, seller, and mortgager of the property to complete the legal requirements in order to transfer the property to the purchaser. They handle the following:
1. Complete title work to insure no liens or encumbrances
2. Set up title insurance as protections against title claims
3. Order survey (optional)
4. Prepare HUD-1 statement showing how funds are disbursed
5. Oversee signing of Loan Docs and Deed Transfer
6. Hold escrows
Realtors are here to herd the cats. It’s not if you’ll encounter a problem but when and what the problem will be. The Realtor is here to guide you through the process.
Average Home Prices
* Disclaimer – States and local customs have processes and laws that vary. Not every state requires an attorney for closing. SC does. If you’re in the midlands of SC call/email us for representation. If you’re not in the midlands of SC call/email us so we can set you up with an agent in your area from our network.
Helpful How To Buyer Videos
About Columbia, SC
The Home Loan Process
State Housing Loans – Forgivable Down Payment Grants
Conventional Loans
USDA Rural Housing Loan
Credit Repair Tips
FHA Loans
FHA 203K Renovation Loan
Construction Loans
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