Claudia Tuttle Myrtle Beach Realtor: Homes, Land, Condos

The first consideration in buying a home is to find a home that fits within your budget. There are many special programs available to first-time homebuyers that sometimes make it more affordable than renting. Generally you can afford to buy a home at two to three times your annual income, depending on your savings and debts. Total monthly housing expenses (PITI) mortgage principal, interest, taxes and insurance should not exceed 30-40% of your total monthly income.

CREDIT

Before applying for a loan it is important to get your credit report in as clean as possible order. Get a copy of your report and if possible pay off as much credit card debt as possible but keep one or two accounts open. Lenders will take into account your current credit patterns and if they are good they may be willing to grant you a loan even if your history is not stellar.

TYPE AND SIZE

There are various types of homes: Single Family, Multi Family, Condominium, Townhouse and Cooperatives.

Single Family provides the greatest amount of ownership and control but requires more money and time to upkeep. As the owner of a single family house you are totally responsible for mortgage payments, property taxes and all maintenance.

Condominiums have an association which oversees common expenses and external upkeep. The owner pays a monthly common charge to the association to cover these expenses. Permission is needed to make any changes and the owners have to abide by the rules and regulations of the association.

Cooperatives differ from Condominiums in that the owner gets shares in the corporation which holds title to the whole complex, and the shareholder gets the right to live in a particular unit. You have to agree to abide by the rules of the corporation, which controls everything from building maintenance to the allowance and size of pets, noise levels and permitted uses of areas such as whether or not you can have a barbecue on your balcony.

Townhouses have a common wall with another unit that can have an effect on noise levels. They are individually owned and usually have a small yard area.

Planned Unit Developments (PUD) or Cluster Homes are single unit houses with no common walls which form part of an association. They can either be built in a cluster, leaving large portions of land for recreational use, or closer together with individual yard areas.

As the owner of a condominium, rownhouse or Planned Unit Development you own a share of the common space, such as gardens, parking areas, and community facilities. (e.g., pool, golf course, recreation hall, tennis court, gymnasium and club house.

Size will depend on several things such as whether or not you are single or planning on starting or expanding your family. Whether you need an attic or a basement, and what you can afford.

New construction or existing is also a consideration.

In newer homes you might find the following benefits;

Energy efficiency Latest technology in wiring
Safer electrical systems
New appliances
Less maintenance required

Existing Homes often offer:

More convenient location to schools, shops and trains
Lower taxes
Better quality building materials
Established landscaping.

WORKING WITH A REALTOR

A good Realtor will guide you through the entire home buying process, providing sound information on the market place, finding the right house for you, preparing an offer, negotiating with the seller, and giving you a list of professionals such as attorneys, bankers, mortgage companies and home inspectors which you will need throughout the transaction. They will guide you in obtaining current information related to taxes, school districts and financing.

An agent is not necessarily a Realtor. Realtors are members of the National Association of Realtors (NAR) which is a trade organization. They subscribe to the code of ethics. A stringent set of rules regarding conduct and standards which must be followed when dealing with the public. Realtors are licensed real estate agents who have completed coursework related to real estate law, financing, buying and selling property. They must pass both a state and national exam and affiliate themselves with a Real Estate Broker who is licensed to operate a real estate firm.

COMMISSIONS

Mostly the seller pays the commission to the broker at closing but this can also be part of the negotiations. The commission rate varies and is based on the selling price of the property.

WAYS TO WORK WITH A REALTOR

There are different options available to you as a buyer to work with a Realtor, and it is in your best interest to have one of the three agreements set out below as in the absence of an agreement the Realtor is working for the seller.

Exclusive Right To Represent (CLIENT) Here you give the real estate firm the exclusive right to represent you. A Realtor exclusively representing a buyer must make a diligent effort to find a property for that buyer.

Open Right To Represent (CUSTOMER) Under this agreement you may look at properties with other Realtors or directly with sellers. You are not committed to use that real estate firm and that firm is not committed to you. The Realtor under this type of agreement may have a legal obligation to bring new listings and other properties to the attention of buyers they represent exclusively and not buyers under an open agreement.

Dual Agency Occasionally your real estate firm may have a property listed that you are interested in purchasing. This creates what is known as dual agency. They must then present you with a dual agency consent agreement for your review and signature.

OFFER AND CONTRACT

A purchase agreement, also known as a sales contract, is signed by both parties when an agreement has been reached on the homes price. You should make sure before signing that the document correctly describes your agreement with the seller on details such as sale price, method of payment, closing date, and what appliances, fixtures and personal property are to be conveyed with the home. A purchase agreement is a legal document.

TYPES OF OFFERS

There are two types of offers: firm or conditional. A firm offer is a non contingent, or unconditional offer. A contingent offer is one that has conditions such as subject to inspection or a mortgage contingency.

Making the Offer

Submit the offer to your Realtor who will then present it to the sellers Agent.
Your Realtor will have all the standard documents to make the offer.
Secure pre-approval for a loan and get a letter confirming your pre-qualified status.
Present this along with your offer and this can sometimes give you an advantage over other offers.
An earnest money or "good faith deposit" is usually required upon acceptance of the offer to demonstrate your commitment to the transaction. The amount varies from contract to contract. Your Realtor can advise you of how much to offer. This deposit is then applied to the purchase price of the home at closing.

In Greenwich an accepted offer goes straight to contract and an earnest money deposit is not usually required.
Any payments that you make for inspections, tests etc. before the contract is drafted, signed and delivered, are done at your own expense unless otherwise agreed.
After you have made your offer the seller can either accept your offer, reject your offer, or make a counter-offer.
When you and the seller have both signed a mutually acceptable agreement, you have a legally binding contract.

APPRAISAL

An appraisal is a written opinion of the property's value and will be required by your lender. The appraiser makes an appointment to physically see the house, reviews recent selling prices of similar homes in the area and provides to the lender a written report which is an opinion of value. The appraisal fee is usually paid as part of your mortgage application but sometimes paid at closing.

INSPECTION

Try to select an inspector with training and qualifications and a member of a professional society. Ask your realtor for the names of three different inspectors and choose one.

An inspection is an evaluation of the property to determine if there are any specific problems that could change its value. It not only points out the bad, but the good aspects of a home, as well as the maintenance necessary. No house is perfect and if the inspector finds problems it will show you what to expect in advance. It doesn't necessarily mean that you shouldn't buy the house but helps you decide on those items you wish to ask the seller to repair. The most thorough home inspector can still miss some items as some problems are slow to develop while others are hidden from view.