Buyers’ Frequently Asked Questions
(Things you
want to know, but are reluctant to ask…)
I have heard that REALTORS®
all work for Sellers, how can I have the same kind of representation?
Nothing could be further
from the truth. Okay, so there was a
time that this was true. But those days
are long gone. Today, Buyers are
entitled to (and I thoroughly encourage) representation on the same terms as
Sellers. So, I work for you, to get you
the best deal I can negotiate on the property you select. My allegiance then is to you, and you alone.
If you represent me, how can you accept
payment from the Seller?
Look at it this way, the
Seller has contracted to pay the Listing Broker a certain sum to get the house
sold. The listing Broker has offered me
a part of that (via our MLS), if I can find a Buyer ready willing and able to
buy that house. So the Seller has
already offered to pay my commission, through the Listing Broker.
How do I make sure my offer isn’t too
high?
Before you make any offer
on any property, I will research recent sales of similar properties, the tax
rolls for that particular property, and other data. I will give you a range of value in which the property should
sell. Then we decide how to structure
the offer to your best advantage, considering down payment, earnest money,
closing costs, and other conditions important to you.
How do I know what kind of shape the
property is really in?
We will put a requirement
in the offer to purchase that makes the offer contingent on a satisfactory home
inspection. We will also have a Termite
Inspection done, as well as an Appraisal. With all these people looking it
over, you will have a real good idea of what you are buying.
What if my loan isn’t approved?
We will make the contract
contingent on you getting financing (and limit it to a maximum interest
rate). If you cannot get that financing,
the deal is off, and your earnest money will be returned.
What is earnest money? Who gets it?
When you make an offer,
normally we will put earnest money in an escrow account until closing. This money gives the Seller assurance that
you are serious about buying the property, and will go through with the
deal. Sellers need such assurance since
they are taking their property off the market based on your offer. If we do not get to an agreement on price
& terms, then the money comes back to you.
Assuming all progresses normally, we bring that money to the closing
table and it is applied to the purchase price.
Do I need a survey?
I think it is prudent to
survey any property before buying. If a
loan is involved, the lender will probably require one as well. It just makes sense to find out exactly what
you are buying. This is the only way to
know for sure.
Not only that, the Title
Insurer will require as a condition of writing your Title Insurance policy.
How about Title Insurance, why would I need
it?
If a loan is used to buy
property, the lender will require you to buy Title Insurance to protect their
interest in the property. You should be
just as concerned with title protection, and buy an Owner’s Policy to protect
your interest in the property as well.
We will talk more about Title Insurance before making any offer on
property. It is an important topic, and
needs your full attention.
What closing costs are involved in buying
property in Florida?
Well, in addition to those
already mentioned (Title Insurance, Survey, Termite Inspection, Home Inspection
& Appraisal), there can be a number of fees attached to any mortgage you
may get. Things like Points,
Origination Fees, Closing Fees, and any number of other “junk fees” all should
be disclosed before the fact by your lender.
What taxes are involved in buying
property?
There are three taxes
associated with buying property in Florida:
1-
Documentary Stamps on the
mortgage note: computed at 35 cents per
hundred (based on you loan amount) or part thereof.
2-
Intangible Tax on Notes of
$.002 on the amount of the new mortgage.
3-
Documentary Stamps on the
Deed, paid by the Seller, based on $.70 per hundred of the purchase price.
Who determines when we close, and take
possession?
We will put your requirements
in our offer to purchase. If the Seller
has other needs, we will negotiate an acceptable date for both parties.
I have heard that closing is a traumatic
process, is that so?
Sometimes they can be, but
most of the time it isn’t bad at all.
Most of the time it takes only about a half an hour or so. I try to make sure that every paper you will
sign is fully understood the day before closing. That way, when we get to closing, it will mainly be a
confirmation of what we have already discussed.
No surprises, makes for
good closings, that’s my motto! I
figure you are bringing the money to the table; you have the absolute right to
know where it all goes, and why!
Don’t ever get in
the position of signing an offer, or worse yet, closing papers, without understanding
exactly what you are signing!
(Sounds dumb, but
you’d be surprised how often it happens!)
What
if I see an open house sign as I am driving around?
If you see an Open House
that you want to stop and look at, please do so. But please tell the agent there that you are working with me, and
give him or her my card. This will
preserve our representation agreement, and my commission.
How do you get paid?
I am an independent
contractor. I have a contract with my
Broker, which pays me a portion of the commissions I bring to the Company. That means that I get no pay until a sale
closes. No salary, no draw, no
expenses, I only get paid if and when, a sale closes.
When you work with me, there are no hidden agendas, and
you will fully understand the whole process at every point along the way. And I highly encourage questions, lots of
questions…
Bob
Francis
Now, Let’s go
find the right home!
Robert W. Francis, CRS
Email: Bob@FourPar.com
(850) 585-4090