So now that you've finished digging through boxes to find all the necessary paperwork the lender required, finished filling out the long application, looked over all the Good Faith Estimate and finally secured financing, what is the next step?

If you haven't already decided to utilize your own Buyer's Agent, now is the definitely the time to decide. 

What are the duties and responsibilities of a Buyer's Agent Why should you have your own Buyer's Agent? What are the laws regarding agency and how do they effect you as a buyer?  What happens if you don't use your own Buyer's Agent?  Do I need a Buyer's Agent when buying a new construction home? You'll be able to check out the answers to these and other questions in a "white papers" post coming in the near future. In the mean time, feel free to check out my previous post regarding whether you need your own Buyer's Agent or not when purchasing a new construction home. For the sake of this discussion, we're going to assume that you're using your own Buyer's Agent.

Though inventory levels have dropped drastically over the last 18 months, there are still hundreds of homes on the market to choose from and builders are constantly making changes to their new home communities including incentives, available lots, etc. To go through all of them would waste hours and hours of your time, energy and gas money and drive you crazy. The MLS, local agent's web sites, Realtor.com, Homesdatabase.com, Zillow, Trulia  and other sites in general and are not very good at painting a true picture of a property nor the neighborhood. You may think you like a property, but it may be much different in person and you may not like it after all. On the flip side, you may think that you don't like a property only to find out you really do once you've seen it in person.

That's where an experienced and knowledgable Buyer's Agent comes in. Part of what your Agent does is to sift through all the properties on the market including new construction lots, homes and communities and find the top 10 that best fit your criteria and are of the best value. They accomplish this by constantly previewing the market inventory and knowing the area that you are looking to move into. While previewing the market, they will know with much more certainty what properties fit your needs because they've seen the homes first hand.

But, in order for your Agent to know which properties best fit your criteria, you need to provide your Agent with the most accurate and complete information possible regarding what you are (and are not) looking for in a property. The best way to do this is to compile a list of "Must Haves", "Would Be Really Nice To Haves" and "Nice, But Just An Added Bonus" and provide that to your Agent.

Start with the "Must Haves", the things that are certain deal-breakers if the property does not have them. List the 5 or so things you must have in a property. For example:

one car garage four bedrooms upstairs walk-out basement not a corner lot certain subdivision and/or school district Then move on to the "Would Be Really Nice To Have", the things that are not necessarily deal breakers, but you would really like to have. List the 5 or so things that you would really like to have in a property. For example:

center island in the kitchen kitchen flowing into the family room so that you can watch your kids while you're preparing dinner first floor study because you work from home a lot large walk-in closets for all the outfits and shoes fenced backyard for the kids and/or dogs The move on to the "Nice, But Just An Added Bonus". The best way to explain this one is that you wouldn't mind if the property did not have these things if the price reflected it so that you could put them in later and still have the property be of great value.

upgraded light fixtures deck already present neutral paint throughout finished bathroom in the basement versus a rough-in finished basement versus unfinished basement If you're having a hard time figuring out which category to put each criteria in, rate each of your criteria on a scale of 1 to 10, 10 being the most important. You'll more easily determine which category each criteria falls in once you've done that.

Once you've compiled the lists, give them to your Agent and go over them in detail. Explain each category in detail so that they fully understand what you mean and your personal taste. The better your Agent understands what your looking for and need, the more efficient and effective they will be in narrowing down the playing field to the properties best suited for you.

Your agent should then provide you with a a list of the top 5 to 10 properties for your review. Set a time to preview these properties in person and with your Agent. Your Agent will take care of efficiently routing and arranging the showing times for you. Please keep in mind that usual showing times are 9:00AM to 6:00PM. Some are available to be previewed a little earlier and a little later in the day, but that's the exception. And make sure that you see the home while the sun is still up in order to clearly see the property and to see how much daylight is present inside the property without the lights on.

 Important note: It's strongly suggested that you do not preview more than 5 to 7 homes in one day. If you do, they will all start to blend together and you will forget the differences between them. One of the only exceptions to this is if you are relocating to the area and will only be in town for a day or two and need to see all 10 properties in the limited time you are in the area.

The typical buyer takes about 20 to 30 minutes to preview one property. If you are previewing 7 properties that are all within a short distance of each other, give yourself about 3.5 to 4 hours, including travel time. Make sure that you have something to drink with you and that you've eaten something recently or have a snack in your pocket/purse.

If you know you will need more than 30 minutes per property, let your agent know so that they arrange the showing times with the Listing Agent and/or sellers accordingly. Most buyers are uncomfortable with the sellers being home so help alleviate that situation by letting your Agent know that you will need more than 30 minutes to preview each property. There's nothing worst than showing up later than expected to find the sellers at home and trying to be sales people and give you a "tour of the property".

Now, if you're looking at 6K to 8K+ square foot homes, that's a different story. The average time for buyers in that category is 45 to 90 minutes and your Agent should already know that.

Make sure you bring the following things with you while previewing the properties:

a comfortable pair of shoes that you will easily be able to take off and put back on (you'll be walking through homes a bit and many sellers wish for people to take their shoes off) a note pad and pen/pencil to take notes of the properties as you're going through them a camera to take pictures of properties so that you can remember them later (the pictures online and in the brochures are not always accurate or of high quality) if you have a significant other that will be helping you make the decision, make sure that they are present. Once you've seen all the properties, you will probably know which one is the most appealing to you. If you're waivering between a few, go back to your lists (see above) and rate each one of them on a point system to see which one is at the top of the list. Some people know the second they see a property whether they want to place an offer on it while others like to sleep on it. Whatever works for you is what you should do.

But keep in mind that you are not the only one that may know that these are the best valued properties in that price range and that there may be other interested buyers looking to place on offer on the same property. This is not meant as a sales pitch to get you to rush in and buy something. It is simply a disclaimer so that you don't yell at your Agent (or me) for not warning you beforehand. I've had competing-offer situations many times even in this market because I'm always looking for the best value and typically not the only one doing so.

After deciding that you want to move forward with presenting an offer on a property, you'll need to figure out what strategy to take with this particular seller. A great Buyer's Agent will have great negotiating skills and know what to look for in order to negotiate in your best interest. But here's the "Catch 22"...if you've already found the best/under valued properties to begin with, their may not be much room to negotiate on the price so keep that in mind.

But price is not the only thing that you should consider. That's where the terms and contingencies come in. Here's a list of some commonly seen terms and contingencies that you may consider:

Do you wish to have a Home Inspection? Do you wish to have a Radon Inspection? What is your preferred settlement date? Do you wish for the seller or you to pay for a Home Warranty Policy? Do you wish to have a copy of the seller's Owner's Title Insurance Policy in order to save money on your Owner's Title Insurance Policy? Do you need a pre or post-settlement occupancy agreement for you or the sellers? Do you wish for your closing costs to be paid for by the seller in the form of a seller concession? Do you wish for the seller or you to pay for the termite inspection? What amount will your Earnest Money Deposit be? What personal property and fixtures do you wish to convey with the property? Do you wish to have an appraisal contingency? Do you wish to have a financing contingency?  Are there any other terms or contingencies you wish to have a part of the offer (Sale Of Home Contingency, Coinciding Settlements, etc)? These are all contingencies and terms that will effect the amount of leverage you have while negotiating. As a general rule, the more contingencies you have and the impact of the particular contingencies on the seller, the less leverage you have when negotiating on the price. You and your Agent should also go over the comps when deciding on a price to offer. "Comps"  are comparable/similar homes in the same and possibly neighboring community that have sold as well as gone under contract within the last 3 months along with comparable active properties. You should also review the latest market conditions in detail.

Once you have agreed on the offering price and terms, your Agent will prepare the offer, review it with you and have you sign and initial where applicable. Your Agent will need to have the Earnest Money Deposit check and lender letter in hand in order to make a copy of them and submit them with the offer. This is to strengthen your leverage as a buyer and necessary in today's market.

And in case you're wondering, the new Regional Sales Contract is 10 pages; the Virginia Jurisdictional Addendum is 5 pages; the Disclaimer is 2; the Contingencies and Clauses addendum is either 2 or 3 pages depending on which ones apply; the Buyer's Agency Agreement is 3 and the Disclosure Of Brokerage Relationship is 1 (if you haven't already signed them) and it typically takes 45 to 90 minutes to go over all the paperwork. It's not as bad as you think, either.

Once you've got the offer finalized, your Agent will either hand-deliver, fax or email the offer to the Listing Agent or seller (if FSBO). They should call the agent before delivering it as a professional courtesy and what we call "Registering An Offer" in Agent lingo. This makes it so the Listing Agent can contact the sellers and make themselves as well as the sellers available to review your offer. The typical response time is within 24 hours though it may be longer if the sellers are out of town, had an emergecny, etc. But the Listing Agent will usually make your Agent and you aware of that ahead of time.

So now the nail biting and possible sleepless night begins. You'll probably be thinking to yourself:

"What will the sellers response/reaction be?" "Will they accept, counter or reject my offer?" "What if they counter or reject - I really like the house!"

It's not fun, but every buyer goes through it. But keep in mind...Sellers usually want to sell their home as much as you want to buy it so they will want to get a response back to you as much as you want a response back.

The sellers have the option to accept, reject or make a counter-offer. If the reject it, you have to evaluate why and if it's worth presenting an offer higher in price and/or with better terms. That's something you have to decide along with a discussion with your Agent.

If they make a counter-offer, that's better than a rejection! And they've already shown you that they are willing to negotiate. You have the option of accepting their counter-offer, rejecting it or making a counter-offer of your own. Typically, you end up meeting somewhere in the middle and everyone is happy. But once again, thats something you have to decide along with a discussion with your Agent.

Hopefully, you'll have your offer accepted in its entirety. There may be some slight clerical or administrative changes, but they've accepted the price and terms. It's been delivered to both parties and is now a Ratified Contract - congratulations!

"Now that I've decided that I want to be a home owner, where do I start?"

So you've decided to purchase a property...now what? Well, the first step is to analyze your credit worthiness, assess your overall financial situation, explore your financing options and obtain a lender letter. This is the first and probably most important part of the process.

• Do you know what your credit score is?
• Do you know if you're viewed as favorable, mediocre or high risk to a lender and how that directly effects your interest rate and which of the 250+ loan options you qualify for?
• Do you know how much of a down payment you will need?
• Do you know how much you truly have to put down once you factor in closing costs and Paid-Out-Of-Closing Items?
• Do you know what information and paperwork you will need to provide the lender before they can qualify you?

You should consult a reputable and experienced lender to get a Good Faith Estimate (GFE) in order to answer these and other questions as well as obtain your lender letter. The GFE will also break down all of the costs associated with the purchase of a home including the interest rate of the loan and your monthly payment of Principal (P) and Interest (I). You will need to factor in Taxes (T) and Home Owner's Insurance (I) in order to come to your final monthly payment (PITI) and lenders will typically ask you for that information prior to providing you with a GFE. You can get tax information on any property off of public records sites (the County or State you are looking to move to) or the lender or your Buyer's Agent can research that for you.

If you are unsure as to which lender to use or who is reputable and experienced, here are some suggestions:

• If you are a member of a Credit Union, check with them. Their rates and closing costs are usually very competitive.
• Check with your banking institution. They may offer incentives to those who have an extended banking history with them and/or a certain minimum daily balance.
• Check with your coworkers, friends or Buyer's Agent to see who they have dealt with in the past and their experience with them.
• Speak with two to three lenders and getting three different GFEs for comparison purposes. Make sure that you speak with them all within a span of one to two weeks. They will each pull your credit and it will hurt your credit score if they are too far apart.

But don't confuse these suggestions with just "buying down the rate" to get a better rate. Yes, it does get you a better rate, but if you don't live in the property for more than 7 years, what you save each month with a lower rate may not outweigh what the cost of the point was.

Once you receive the GFEs from the two or three lenders you've checked with, make sure to compare them side-by-side. You can do this with your financial planner, friend or family member who has bought five to ten or more properties in the last several years or your Buyer's Agent. Understanding the entire GFE is key to knowing whether it just looks like a good deal or if it really is a good deal.

One thing that is intangible is the service and performance of the lender. Sometimes, if it's too good to be true, it is. The lowest quote may not always be the best one. What if it looks good, but the lender is sloppy, procrastinates or just doesn't have a good work ethic and your loan isn't ready come settlement date? Well, there are no current laws holding lenders accountable and YOU pay the price.

That's right...if the lender screws up and the loan docs are not ready or the lender pulls a bait and switch with higher closing costs or a higher interest rate and you don't want to move forward with the purchase of the home, you will be in default of the contract and may lose your earnest money deposit, etc. This is why it is so important to work with a reputable and experienced lender.

Sounds scary, but it really isn't. Seventy percent of Americans are home owners, which means that 210 million people have had to obtain some sort of financing and went through a similar process as you. And if you're informed and have people on your side looking out for you, you should have no problem.

If you wish to get a list of information you will need to provide a lender, a rough estimate of what you can afford and further information on financing and what to look out for, refer to The Buyer's Guide To The Home Buying Process. The Financing section provides information on interest rate tables, lender's calculations, maximum monthly debt ratios, a check list of items to provide the lender, etc.

 You may get a better price by dealing directly with the owner, because he or she will probably be anxious to avoid having a foreclosure on the credit history. During pre-foreclosure you will be able to negotiate directly with the home’s current owner, and have an opportunity to get a really close look at the home’s condition. When To Buy While it’s possible to buy beachfront foreclosures at any time between pre-foreclosure and the foreclosure auction, the time to act is really during the pre-foreclosure period. The banks or lending institutions benefit from having the homes reoccupied because they no longer have to pay to insure or maintain them, and buyers benefit because they can get into beachfront homes which would otherwise be beyond their means.

 Because banks holding title to beachfront foreclosures are motivated to have them reoccupied as soon as possible, buyers can often purchase beachfront foreclosures for surprisingly low prices. Like all foreclosures, beachfront foreclosures will usually sell for a price significantly discounted to their fair market value. Discounts To Market There is no difference between a beachfront foreclosure and any other kind; all foreclosures happen when a bank or other lending institution assumes possession of a name after its owner has failed to stay current on the mortgage payments for a long enough time. Beachfront foreclosures do exist, and for those willing to be patient until one comes onto the foreclosure auction market, can be the opportunities of a lifetime. But for those who are willing to make an effort to find their perfect place in the sun, searching through lists of foreclosure properties in the hopes of finding beachfront foreclosures can mean a dream come true.

  The idea Life that life’s a beach may seem like a fantasy to most people, simply because a life at the beach is simply beyond the means of most of us.

Book: Flip Your Way to Wealth

Learn to scout properties and structure the deal so you end up a winner.

REVIEWED BY KELLY QUIGLEY

Flipping real estate—buying a property at a low price and selling it at a higher price in a short timeframe—can be a risky endeavor. But if you’re willing to take on the risks and do your homework, flipping also can be a fun way to make a lot of money, says author Mark B. Weiss, CCIM. Weiss, a Chicago real estate broker and a director of the Chicago Association of REALTORS®, shares the wisdom he’s gained flipping properties over the span of his career, with tips on how to find diamonds in the rough, line up financing, and locate the best buyers. If you’ve been thinking about flipping, this is a good primer on how to handle each step of the deal—even the ethical challenges you might encounter.

Tips From the Book:

Look beyond the property to determine value. When you’re considering properties to flip, look at how surrounding areas might change in coming years. Are there any big developments planned that could affect the property’s value? Are nearby roads sufficient for their traffic load? Is there ample street parking? These elements aren’t part of the property but certainly will impact the selling price down the road. Know when to walk away. The biggest reason to abandon a purchase is that the price is too high. But there are other grounds for walking away—for example, if the property needs too much work or if the salesperson is too pushy (there may be problems they hope you don’t uncover in time). Trust your instincts—hold off on a purchase if something doesn’t feel right about the property or the seller. Hire a tax expert who really knows real estate. As a real estate flipper, it’s essential to have a good accountant to advise you on constantly changing tax laws on local, state, and federal levels. Make sure the person you hire has experience in real estate—which you should verify by checking references and viewing client lists. A good general accountant may not cut it in the narrow field of property flipping.  

Also Check Out: House Flipping

Before examining how the payment process works at a used car auction, it is important that you know that not all used car auctions are the same. For starters, different auction houses and companies have different methods of operation. It may also depend on the type of auction that you attend. For instance, if you were to attend an auto auction, one where only used cars were being sold, you may have a little bit more flexibility, payment wise, than you would if you attending an auction where a number of products, including used cars, were being sold.

Despite the possibility of a variance, there are a number common ways that you can go about paying for a used car at an auction. One of those ways involves cash. Cash is a nice and easy way to pay for a used car at an auto auction. The only thing that you need to do is be sure that you have enough cash with you. That is why it may be a good idea to attend a sneak peek, if possible. Sneak peeks, which are also known as inspection sections, often take place online or in person at a set date and time. It is also important that you carefully handle your cash, especially if you plan to bring a large amount with you to a used car auction.

In addition to cash, credit cards are another common method of payment accepted at most used car auctions. What is nice about paying for a used car with a credit card is that you do not have to worry about carrying and possibly losing a large amount of cash. Credit cards are also nice as you receive a record or a confirmation for your purchase. Yes, a used car auction house or company should also give you all applicable documents, but sometimes it is nice just to have your on records. In addition to traditional credit cards, it may also be possible for you to use a debit card, as long as it is one that can be processed as a credit card.

Checks are another method of payment that is accepted at most used car auctions. Although checks are commonly accepted, it is not uncommon for restrictions to be attached with a check payment. For instance, there may be a limit on how much you can write a check for, like two thousand dollars or so. You may also find that it takes longer to receive your recently purchased vehicle. When it comes to large check amounts, many used car auction houses or companies hold off on the delivery or pickup of your vehicle until your check has cleared.

Depending on the auction house or company hosting the used car auction in question, you may also be able to receive used car financing. While being able to receiving used car financing is nice, especially if you are in desperate need of a new vehicle, it is a service that is not always offered. Therefore, if you need to rely on used car financing, it is important that you search for an auto auction that has used car financing options available. Of course, before agreeing to sign on any dotted lines, you will want to review the used car financing offered to you, including the term of that loan, as well as the interest rates.

As outlined above, you have a number of different options when it comes to buying a used car from a used car auction. By choosing to attend an auto auction hosted by a well-known auction house or company, like North Shore Auto Auction, you may gain access to as many as fifty used cars for sale.

Also Check Out: Richmond, VA real estate

Perhaps, one of the most important things that you need to remember, when it comes to buying a used car from a used car auction, is that not all used car auctions are the same. Auto auctions come in a number of different formats. For instance, there are auctions where only used cars are sold and then there are others auctions where a large number of products, including used cars, are being sold. To have a larger selection of used cars to choose from, you may want to focus solely on auctions that specialize in the auctioning of used vehicles.

In keeping with the type of used car auction that you wish to attend, it is also important that you examine whether or not you are even able to attend. If you are just one lone individual who is looking to buy a personal car for yourself, you will want to try to find a public used car auction. Public used car auctions are auctions where anyone is able to walk in and place a bid on a used car. It is important that you know what type of used car auction you plan on attending, as there are auto auctions that require proof of a dealership license.

In addition to the type of used car auction that you wish to attend, it is also important that you examine how the auction is operated. For instance, are you required to arrive at the auction and bid on a vehicle that you have never previously seen or had the opportunity to examine? While a large number of auto auctions work this way, you may only want to attend auctions that give you the opportunity to inspect their used cars. This inspection session, if it is available, is often scheduled in the days leading up the used car auction. In addition, you may want to see if the auction house or company in question has an online website. If they do, you may be able to find information, including pictures and detailed descriptions, of some of the cars that at the auction.

It is also important that you examine methods of payment accepted before you start bidding on a used car at a used car auto auction. Unfortunately, many first time bidders mistakenly believe that all auto auctions accept the same methods of payment. This is a mistake can be troublesome and result in a large hassle. That is why it is important that you examine the methods of payment accepted. In most cases, you will find that cash, credit cards, or certified checks are accepted. In some rare cases, you may be able to find a used car auction house or company that offers financing or one that accepts personal checks.

Before bidding on a used car at a used car auction, it may be a good idea for you to speak to an auction representative. Depending on the auction house or company in question, you may even be able to do so before attending an auto auction. When speaking to a company representative, you will want to inquire about the documentation that you will receive when you bid on and buy a used car. After buying a used car, you will need to register it with your local Department of Motor Vehicles (DMV). To register a vehicle with the DMV, you need to have proof of ownership. Most well-known and reliable used car auction houses or companies will automatically provided you with the required documentation, but it may still be a good idea to get verification ahead of time.

Since the used car auction that you choose to attend will have a significant impact on the success that you see, when buying a used car, it is important that you choose your auto auctions carefully. If you are a Chicago resident, a resident of a surrounding area, or would be willing to travel there, you may want to examine North Shore Auto Auction.

Also Check Out: Richmond, VA real estate