Learn About Buying

Should I use a real estate professional?

Yes! In today's complicated real estate market, a real estate professional is even more important than ever. It would take you months, and even years, to gain the knowledge offered by a true real estate professional. From knowledge of the market, to understanding the financing maze, to protecting your interests while hammering out the details of a real estate purchase contract, your professional real estate agent can save you time, money, worry and aggravation.

What is a REALTOR®?

A REALTOR® is an agent or agency that belongs to the local or state board of REALTORS® and is affiliated with the National Association of REALTORS® (NAR). They follow a strict code of ethics beyond state license laws and also sponsor the Multiple Listing System (MLS), which is used to list houses for sale.

What is the role of a Buyer's Agent?

If our real estate firm and agents represent you, we must

• promote your best interests
• be loyal to you
• follow your lawful instructions
• provide you with all material facts that could influence your decisions
• use reasonable skill, care and diligence, and
• account for all monies they handle for you.

Once you have agreed for our firm and our agents to be your buyer's agent, we may not give any confidential information about you to sellers or their agents without your permission so long as we represent you.

Services:

Whether you have a written or unwritten agreement, a buyer's agent will perform a number of services for you. These may include helping you

• find a suitable property
• arrange financing
• learn more about the property and
• otherwise promote your best interests.

If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller.

How is a Buyer’s Agent compensated?

A buyer's agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer's agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.

What is the MLS?

MLS stands for "Multiple Listing Service." Any real estate agent that is a member of the MLS may assist a purchaser in all aspects of the sale of any property that is listed in the MLS. Our office is a member of the Owensboro Multiple Listing Service.

How does the MLS benefit buyers?

Because members of the MLS can show and sell any property that is listed with the MLS, a buyer of real estate can save themselves an exceptional amount of time by working with a single agent that gets to know the buyer's needs and wants. Rather than driving all over town from property to property, then going from company to company to see the properties of interest, buyers can go to one person to access information about all of the properties that he/she may be interested in.

Should I start the loan process before I make an offer?

Yes! Many sellers are unwilling to take their property off of the market while waiting to see whether you can qualify for a mortgage loan. In order to obtain a pre-approval letter, buyers should go to the mortgage department of the bank they normally use, or talk to your real estate agent for suggestions. This will make the buying process much easier for you.

What types of financing are available?

There are a wide variety of ways in which you are able to finance the purchase of real estate. The most common loans used are FHA, VA and conventional. However, because each person's situation is unique, and because each property is unique, it is a good idea to contact a mortgage loan specialist to discover the best "fit" for your particular situation. Your real estate professional should be able to provide you with the names of several people that will be qualified to help you decide which type of loan will best suit your needs.

How do I make an offer to purchase?

Once you have found the home you wish to purchase, your real estate agent will assist you in completing all of the necessary documents. These documents include a variety of disclosures relating to the property and the people involved, and the Purchase Agreement. It is important that you ask your real estate agent any and all questions that you may have about these documents.

After completing the Purchase Agreement and disclosure documents, your real estate agent will then present them to the agent representing the Seller of the property you wish to purchase. If the Seller accepts your offer, you have purchased a house!

What is a disclosure statement?

A disclosure statement, as used in the real estate context, is a form the seller of property must complete and provide to the buyer disclosing to the buyer all defects and various other information about the residential property.

What is Earnest Money?

Most sellers will want an earnest money deposit from the buyer to show the buyer’s good faith in entering into the contract. This money is generally placed into the listing broker’s escrow account and held in trust for the protection of both parties. Under KRS 324.111(4), that money can only be removed upon performance on the contract, a mutual released signed by both parties or a court order.

Should I have a Home Inspection?

YES!!! When you are purchasing property, whether residential or commercial, you should hire the services of a reputable, and qualified, real estate inspection company. Most Purchase Agreements used by real estate professionals specifically provide for the availability of an inspection of the property. If you choose not to have an inspection of the property, however, beware! Once you have accepted delivery of the deed, in many cases, you have accepted the property in its current condition.

Do not confuse an inspection with an appraisal! In some cases, the appraisal may appear to be as good as an inspection. However, an appraiser never conducts a thorough home inspection. An inspection of the property you are buying should allow you to fully understand the condition of that property.

What is Title Insurance?

When you finance a property, the mortgage company will usually obtain title insurance to secure the mortgage company’s interest in the property. The mortgage company’s title insurance does not protect you as the buyer. If you want to protect yourself and your interest, you must purchase a homeowner’s title insurance policy.

Are real estate professionals required to follow Fair Housing Guidelines?

Absolutely!!! Kentucky’s Fair Housing Law forbids discrimination in housing because of a person’s color, religion, race, sex, national origin, familial status or disability. If you feel that you have been the victim of discrimination, contact the Kentucky Commission on Human Rights at http://kchr.ky.gov/.

When should I do a final walkthrough?

The final walkthrough should be done as close to the closing as possible. This way there is less time for something to happen while waiting for the closing. A lot of buyers will do their final

What is a home inspection?

It is an evaluation of the visible and accessible systems and components of a home (plumbing system, roof, etc.) and is intended to give the client (usually a homebuyer) a better understanding of their condition. It is also important to know what a home inspection is not! It is not an appraisal of the property's value; nor should you expect it to address the cost of repairs. It does not guarantee that the home complies with local building codes (which are subject to periodic change) or protect you in the event an item inspected fails in the future. [Note: Warranties can be purchased to cover many items.] Nor should it be considered a "technically exhaustive" evaluation, but rather an evaluation of the property on the day it is inspected, taking into consideration normal wear and tear.

How do I request a home inspection, and who will pay for it?

You can arrange for the home inspection or ask your real estate agent to assist you. Unless you otherwise agree, you will be responsible for payment of the home inspection and any subsequent inspections. If the inspection is to be performed after you have signed the purchase contract, be sure to schedule the inspection as soon as possible to allow adequate time for any repairs to be performed.

Should I be present when the home inspection is performed?

Whenever possible, you should be present. The inspector can review with you the results of the inspection and point out any problems found. Usually the inspection of the home can be completed in two to three hours (the time can vary depending upon the size and age of the dwelling). The home inspection report is your property. The Home Inspector may only give it to you and may not share it with other persons without your permission.

What is a home warranty?

A home warranty is basically an insurance policy that covers major appliances and mechanical systems in the house such as heating and ventilation systems, plumbing, electrical, garbage disposals, duct work, garage doors, oven/range/cook tops, etc. The policy is usually paid for at the closing and is good for one year.

For further discussion of these, or any other question, please e-mail to info@century21partners.com.