Bill's Buyers Guide
Home Buying Guide
1. The first part of buying your Dream Home is to get pre-approved for a loan. Unless you are paying cash, (and are willing to provide proof that you have said cash), this is a critical beginning so that we knew the price range to search homes that meet your needs. I can have a lender send you a formal loan application so that you know all the items needed in the process. Also many times you can do this online or by phone. A 15-20 minute phone call with a lender will usually provide enough information to get a good idea of price range. This is a very important part of the process since a seller will rarely accept an offer unless presented with a pre-approval letter from a lender proving your credit worthiness. Historically too many deals have not closed because buyers did not get pre-approved, so this has become the standard real estate practice today.
For the Strongest Negotiating Position, a Pre-approval Letter is virtually as good as cash. This means that formal loan application has been done, credit reports received, verifications of funds done and that the only things needed is the property with an appraisal to verify property value and final underwriting. Since formal loan application is required within 5 days of the acceptance of a contract, it makes sense to have this done in advance. It can also mean that you lose a home of your dreams if two virtually identical offers are received by a seller that the one with a pre-approval letter is the likely one that is accepted rather than the one without. In addition, moving preparations, inspections and many other items will start taking time, so if the loan application is done in advance it is one less item to lower the normal anxiety of purchasing a home.
2. Selecting area in the Greater Tucson Valley is the next most important part of narrowing the search. Tucson is a huge valley and it would be nearly impossible to show all areas without exhausting any buyer. An overview is usually necessary for buyers not familiar with the area; this will help narrow the search to sections of Tucson that would best suit your needs. Areas of interest, place(s) of employment, amenities in given areas are all part of the selection of where to concentrate the search. Price also has a major play in many areas.
Since Realtors also sell the majority of New Homes, they will usually be part of the mix that we will see. Please remember that the Realtor must be present upon your initial visit to a New Home Subdivision, so please do not to New Home Subdivisions alone. If you do go alone, you will NOT have Representation, since you will be working with the on site agents. On site agents work for the builder and that is who's best interests they protect, not your best interests!
3. As we see home it is necessary to start eliminating homes that do not meet your needs. This needs to start by the time that you have seen 3-4 houses. If you do not do this, by the end of the day you will have 10-20 houses that you will not remember clearly. You should never have more than 3-5 homes in the "possible" list and it is better to have no more than 3. It will help you remember your top choices and save a lot of time and confusion by trying to remember from a large list that will have begun to blur when attempting to remember which has had what feature.
When you have decide upon your favorite house or the nearest to your Dream Property, (sometimes a compromise or two become necessary; Utopian properties rarely exist!), we go to my office and prepare a contract after doing a market analysis of comparable properties. This helps determine whether the property is priced correctly and what price to offer. In a seller's market, that sometimes becomes meaningless; often in that type of market, prices are often gotten that are not in keeping with what comparable past sales have indicated the worth to be.
Since over pricing rarely accomplishes the goal of getting more than the property is worth, overall there are not great numbers of overpriced properties on the market. Greater Tucson properties are generally getting 95-100+ % of the listed price. When an analysis shows that the property is priced correctly, it is foolish to "low ball" the price in an offer since the seller will generally not react well and may hold out for full price as he/she may think that you are trying to "steal" the property. Basically ridiculous offers generate full priced counters or out right rejected offers and principals become defensive and combative in further negotiating. The initial contract is just that; the entire transaction go back to the negotiating table after inspections.
I usually provide a copy of the resale contract on the initial contact so that you have time to read and comprehend the content prior to filling in the blanks. This give you time to ask questions prior to writing an offer and getting any issues in the body of the contract clarified before the price, terms and conditions are formalized. Again, this relieves the stress of trying to read and comprehend everything in the excitement of the offering stage.
The contract has built in safety factors to allow time frames to rescind the contract. These include:
A. Inspection time of 10 days, unless altered in writing the contract.
B. The financing time frame allows 5 days to do formal loan
application. (Which should have been done already!)
C. Receiving the Sellers' Property Disclosure Statement, This
"SPDS" discloses what the seller(s) know and problems known
Regarding the property.
D. Lead Based Paint disclosure on homes built prior to 1978. A
booklet of information regarding LBP is given to help you determine
whether you want to perform a special inspection on this. Most
older than 1978 homes will likely have lead based paint, so if this is
a major issue, possibly we should look at homes built after 1978.
E. Pool Safety: This points out that pools should be enclosed with
fencing to keep children, non-swimmers, etc., from the pool area
without permission.
F. Covenants, Conditions & Restrictions, commonly know as Deed
Restrictions, are provided so that you will have an opportunity to
review these prior to the inspection period ending.
G. Preliminary Title Report: This will show what must occur to
transfer the title of the property from the sellers to the buyers.
Included are paying any existing liens, identifying any easements,
(usually utility easements, possibly ingress/egress), etc.
H. Whether the property is on public sewer or a septic waste system.
Any septic system must be pumped and certified prior to closing.
I. Termite/Pest Inspection.
J. Walk through prior to closing to verify any agreed upon repairs
have been done by a licensed repair person.
K. There are warranties that survive closing. Any material defect that
was hidden by the seller and that adversely affects the value may
cause a need for mediation. This is highly unusual, but can happen.
As a Buyers' Agent it is my duty to protect your best interest and
I take that very seriously. I will work to provide you the best
representation and help you avoid any pitfalls that could occur in
the transaction.
4. The Title Company or Escrow Agency is the neutral third party that
handles all the "paper gathering" and is the company that does all
the things that attorneys do in some states. The contract with
earnest money is turned over to the Title Company after acceptance
of an offer. The title company is responsible for getting the lenders
documents from the lender and getting signatures from the buyers
on these documents. They also get the payoffs, any Homeowners
Association information, any repair invoices, all monies that are then
dispensed at closing to ensure that all liens are paid and that good
marketable title is conveyed.
Included in this are pro-rations of taxes, interest, rents if
applicable, association fees, etc. The Title Company is the party
that actually has the deed and any lien, (if a loan is party to the
terms), recorded with the county.
The deed is delivered via mail from the county to the buyer(s)
after recordation. This may take up to 2-3 weeks sometimes.
5. All the things that happen before closing have mostly been
mentioned previously, as a synopsis:
A. The Title Company executes all the documents in their charge
and is the "holding" company of all information involved with
the transaction.
B. All inspections: Physical for mechanical, plumbing, electrical
roof, and overall condition; termite/pest, septic, lead based
paint, appraisal, etc., for negotiation any of these items.
C. Final underwriting and loan approval from the lender.
D. Changing utilities to the buyer(s) names.
E. Informing every one of your new address and the effective date.
6. The Actual Move: Possession occurs after the deed is recorded.
This may be a day or up to a week or more after you actually sign
closing documents. These documents must go to the lender for
final approval before the lender releases the funds and approves
the disbursement of funds.
Makes certain that your mover arrives after recordation as you
could have storage charges if the mover arrives before recordation.
Should you need help with landscapers, pool service, trades people
or others, please contact me early into the transaction as many of
these people are booked 2-6 weeks in advance and some possibly
longer depending upon the time of year and specialty. This is
extremely important if you want to paint, carpet, tile or do other
remodeling prior to moving into your home. These things need
sufficient time to enable timely planning.
Closing is not the last you will see me. I will be stopping by with a
housewarming gift if not given at the signing of the documents. I
welcome any calls when you have questions. The desert may be a
"foreign" territory for those moving from other areas, so do not
be afraid to ask questions.
Keeping all your closing papers together will be a good idea. Your
accountant will probably need them for tax preparation and your
attorney may want them to update your will, trust, etc.
7. Now you are a Tucsonan!
There are many things to do in the Greater Tucson area or on a
day trip.
A. Immediate Tucson area:
1. The Desert Museum
2. Sabino Canyon
3. Gates Pass & the Saguaro National Monument West
4. Saguaro National Monument East
5. Catalina State Park
6. Mount Lemmon: Location of the United States Southernmost
Ski Resort....yes SNOW SKIING!
7. The University of Arizona
8. Centennial Hall, on the U of A Campus, has great theater
productions.
9. The Tucson Symphony
10. The Tucson Opera
11. The Arizona Theatre Company (ATC)
12. The Invisible Theatre (IT)
13. San Xavier Mission: The White Dove of the Desert, a 300
year old wonderful piece of architecture, (not a religious
suggestion!)
14. Old Tucson
15. Colossal Cave
16. The Tucson Zoo
17. Numerous Golf Courses and Hiking Trails.
B. Within a Day Trip Commute:
1. Tubac: An Arts Colony south of Green Valley: allow most of a
day for your first trip.
2. Tummaccori: another old mission south of Tubac.
3. Nogales, Sonora: border town in Mexico. NEVER buy until
you have checked priced from 3-4 places!
4. Tombstone: The Town too Tough to Die! Also, don't miss Boot
Hill on the way, just before you get into Tombstone. Tombstone
claims the world's largest rose bush/tree.
5. Bisbee: an old hilly copper mining town. Now many artists,
hippies, etc., live there.
6. Chiricahua National Monument/Mountains
7. Elgin & Sonoita areas; our answer to Napa/Sonoma Valleys
with wineries.
8. Patagonia Lake
9. Organ Pipe Cactus National Monument
10. Kitt Peak for observatories
11. Picacho Peak
12. Kartchner Caverns
I look forward to hearing from you and working with you to find a home that suits your needs. The desert is a great place to live. The odds are that you will live outside more than anywhere you may have previously lived.
Sincerely,
Bill Jones
