SELECT THE RIGHT AGENT
Nowadays, it is easy to locate properties through a combination of open houses and online searching. It may not, however, be in the clients’ best interests to wait until they locate a house to select a specific agent.
I can help identify the right neighborhood, coordinate financing, filter out inappropriate properties, identify off-market opportunities, and answer questions that come up along the way. Additionally, our agents will help screen properties during broker tour and notify you when suitable properties come on the market.
KNOW THE NEIGHBORHOODS AND MARKETPLACE
Clients generally have an initial idea of what cities and neighborhoods appeal most to them. However, you should examine your criteria to determine the areas within the neighborhoods you feel are a good match.
Our agents will personally take you to some of the neighborhoods, give you an overview of the area, and show a few representative homes. More importantly, our agents will provide you with information about local schools, parks, and appreciation potential of each area. Generally, clients should not purchase a home until they are familiar with the neighborhoods and have seen enough properties to truly recognize an excellent fit.
Getting pre-approved by a local lender or mortgage broker is one of the first things you should do for many reasons. A pre-approval letter is a prerequisite for serious consideration of your offer. Knowing the available loan amount will aid in determining how much you intend to spend on your home and which neighborhoods to consider.
Generally, you should begin the pre-approval process immediately after meeting with your agent. If any issues come up, such as inaccuracies that make your credit score lower than expected, you will have time to resolve them. I can help you through this process and recommend excellent lenders and mortgage brokers. Our recommendations are completely free of any conflict of interest; I do not benefit monetarily from providing recommendations.
Once we have located the desired property, carefully review the disclosures that the seller and listing agent provide.
Disclosures contain many important items, most notably the updates if any, the seller’s disclosures, and a TISH report if applicable.
Property Inspection:
The property inspection is the inspector’s opinion on the home’s plumbing, electrical systems, foundation, roof, and overall condition. This report will list all issues the inspector finds. The property inspector does not provide the cost estimates. Generally, items found in the property inspections are not addressed by the seller, but they are your responsibility to repair.
Seller Disclosure:
The seller’s disclosures contain answers to questions, such as whether any remodeling has been done, and if so, whether the remodeling was done with permits. Minnesota is very protective of homebuyers and requires sellers to disclose all known material problems a property may have.
The Title Report:
The title report is issued by a Title company, and insures that the seller can convey clear title without any liens preventing a smooth conveyance. All liens that may be on the property, such as unpaid property taxes, are listed in the title report. Problems with conveying title are rare.
Home Owners Association (HOA):
If you are considering a townhouse or condominium, it is likely that the HOA documents will be included in the disclosures or be quickly forthcoming. Important issues to consider include the size of financial reserves, whether any litigation or special assessments are looming, and whether there are plans to heavily increase HOA dues. Unlike the interest on your mortgage, HOA dues are not tax-deductible. Together, you and our agent will review the disclosures and discuss any concerns either of you may have with the information contained therein. Only after you feel comfortable with the disclosures should you consider making an offer.
TISH Report:
In certain cities in the Twin Cities metro, a seller is requited to have an inspection before the home can be sold. This inspection is often called the “Truth-in-Sale of Housing” (TISH) report, or a “truth in housing” report. Unlike a buyer’s inspection, which can hone in on quirks or inconsistencies, the TISH report is focused on risks to life or health that can be found within the home. The report is usually made up of a checklist of recommended or required fixes. Buyers will be well aware of what the TISH report outlines, as sellers are typically required to include the report within the disclosures they provide potential buyers.
Which cities require a TISH inspection?
*Click the city for TISH inspection.
- Bloomington
Types of Properties: Single Family, Two Family, & Multiple Family (condominiums, townhouses, mobile homes) - Golden Valley *also requires an inflow/infiltration inspection
Types of Properties: All properties, Residential and Commerical (sewer inspection) - Hopkins
Types of Properties: All one to four-unit dwellings, including condominiums and townhouses - Maplewood
Types of Properties: All Dwellings - Minneapolis
Types of Properties: Single Family, Two Family, Townhouses, and first time condominium conversions. - New Hope
Types of Properties: All Dwellings - Richfield
Types of Properties: All Dwellings - Robbinsdale
Types of Properties: Single Family, Two Family, Three Family, Townhouses,
Condominiums - Saint Louis Park
Types of Properties: Single Family, Two Family, Townhouses, and Condominiums. - Saint Paul
Types of Properties: Single Family, Two Family, Townhouses, Condominiums, and Co-ops. - South Saint Paul
Types of Properties: Single Family, Two Family, Multiple Family,
and mobile homes.
Next, we will work with you to draft an offer. As your Realtor®, I will speak with the listing agent ahead of time to ascertain the seller’s desires and to see if you can offer any items of value to the seller with little cost to you. This shows your desire to work with the seller and can optimize the situation for both you and the seller. Regarding what price to offer, as your realtor I will provide you with a comparable market analysis, showing the selling price of recent comparable properties and what the market value is of the current property. Additionally, I will update you on the interest level of other parties and whether you may be in a multiple-offer situation.
Once an offer is made, it can be accepted, rejected, or countered. A counteroffer accepts all the terms of the contract, except the terms that are mentioned. For instance, a counteroffer may increase the purchase price or shorten the escrow period. If there is only one counteroffer and that counteroffer is accepted, then a binding contract has formed. On the other hand, if there are multiple counteroffers, which may all have the same or different terms, the counteroffer must be accepted by the buyer and reaccepted by the seller, ensuring that the home sells to only one party.
After the parties formed a contractual agreement, the escrow period begins. An escrow company is a neutral third party that acts as an intermediary between the buyer and seller. The title companies handle both the title and escrow duties of the same transaction. The most important job of the escrow company is to properly take the buyer’s money in exchange for the seller’s property. An average escrow period is 30 days, with the vast majority ranging from 15-45 days.
If your purchase contract has contingencies, such as a property contingency, then your agent will find inspectors to view the home during the contingency period. During this period, you can determine whether you want to proceed with the purchase. If you back out of a contract for a reason related to a contingency during the contingency period, then you are entitled to a full return of your “good faith deposit.” Our buyer agents can assist you and ask the seller to credit you for any new problems. Usually, an agreement can still be reached if the seller accepts your requests. If your findings uncover a major issue, such as bad foundation, then you will likely want to back out of the deal without seeking a credit, as this involves a lot of risk. If you have a loan, as most homebuyers do, then an appraiser will appraise your home. Also, our agents will work with your loan officer to ensure that the loan proceeds arrive on time and with little hassle.
Closing is the very last thing to do in the home-buying process. This is when you exercise your writing hand and sign the mountain of paperwork the lender requires, pay your closing costs and collect your keys.
In terms of closing costs, these may vary depending on your loan. Currently, you can typically expect to pay between 2 and 5% of the purchase price. The amount you’ll need for closing will vary, based on the details of your loan, and your lender should tell you beforehand exactly how much you need.
As far as how long closing takes, plan to block out at least an hour for the signing.
the closing agent then files the paperwork with your county recorder or register of deeds office to make it official, after that, the home is yours!
Enjoy your new home! I am here to serve you for all of your housing questions or issues during and even after you close.
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