Buyer's Resources - Table of Contents...

Overview of the Buying & Selling Process Benefits of Home Ownership Finding the Right Home Home Shopping Tips Home Inspections Answers to Frequently Asked Questions SC Real Estate License Law & Agency Relationships

Overview of the Buying & Selling Process

The Buyer... 1. Considers the purchase of a home. 2. Selects a real estate agent. 3. Determines needs and wants. 4. Discusses financial issues. 5. Views & researches target homes. 6. Makes an offer to buy. The Seller... 1. Decides to sell property. 2. Selects a real estate agent. 3. Determines needs. 4. Prepares home for marketing. 5. Agent markets the home. 6. Accepts, rejects or counters offer. 7. Offer Accepted 8. Loan Application 9. Inspections 10. Title Search 11. Appraisal 12. Loan Approval 13. Closing Papers Signed 14. Documents Recorded 15. Funds Available To Seller 16. Seller Moves Out 17. Buyer Moves In Table of Contents

Benefits of Home Ownership

Credit: Owning a home helps you establish financial credibility. Independence: Owning your own home provides you with independence and more privacy than renting. You are free to paint walls, plant flowers, keep pets and anything else within legal bounds. Investment: As you make more payments and own more of your home, you add to its investment value. Most improvements you make will also add to its value. Pride: A home reflects its owner's values and lifestyle. Owning a home can provide you with a source of pride, enjoyment and satisfaction. Security: A home can provide security against inflation because the value of your home increases as prices go up. Stability: Being established in a community provides a sense of belonging, stability and security. Tax Advantages: Interest on your mortgage loan is deductible on your yearly personal income tax return. Many of the closing costs associated with purchasing your home are deductible, as are your property taxes. Table of Contents

Finding the Right Home...

Real Estate Agents You can sit down with a real estate agent and discuss your needs, type of area, style of home, amenities and everything you really want in your next home. Real estate agents can help you by accessing a Listing Service which covers all properties listed for sale within a specific area. Together, you can select the homes you would like to see, set appointments and preview homes in a short period of time. An agent can guide you through the entire process. Newspaper Ads/Internet Many people go through the real estate classified section or browse the Internet to find a home that appeals to them. However, your real estate agent will have many listings available that may not appear in the newspaper or Internet on a continuous basis. New listings come on the market daily. Multiple Listing Service Your real estate agent should have access to the multiple listing service if it is available in your area. It usually includes the following details about homes and properties for sale: Location Price Photograph Utilities Amenities Annual property tax Current financing (when assumable) Listing company When Previewing A Home... Write notes when previewing a home so you will be able to discuss the details later with your real estate agent. Ask questions about the home and discuss any objections or concerns you may have. Ask about the community - schools, shopping and transportation. Ask specific questions about the construction of the home; electrical, plumbing, heating, cooling systems, etc. Have Fun Relax. Finding your new home can be a rewarding experience. Have a good time and enjoy the process. Table of Contents

Home Shopping Tips...

Check For Properly Working Appliances/Fixtures: Bathroom Sinks Showers/tubs Toilets Vent fan Heating fan Appliances Dishwasher Stove Oven Ice maker Garbage disposal Range hood Refrigerator Freezer Microwave Trash compactor Kitchen Kitchen cabinet doors Drawers Sinks General Lights (interior & exterior) Windows Heating system Ceiling fans Hot water system Air conditioning system Electrical outlets Door bells Doors Water purifier Fireplace damper Garage door Ensure House Is Well-Built& Systems Are In Working Condition: Exterior Brick bulging or cracking Shingles missing or broken Siding rotted or missing Gutters damaged or need to be cleaned Concrete cracked in sidewalks/driveway Basement Water seepage in basement Cracks in foundation Poor ventilation Interior Sub-flooring damaged or loose Cracked walls or ceiling Cracked tiles Loose plaster Flooring damaged Soft, springy floors Water stains near windows Water stains on ceiling below bathroom Water stains in attic Pipe insulation missing Table of Contents

Home Inspections...

What is an inspection? There are numerous types of inspections. An inspection is meant to evaluate, at minimum, the structural and mechanical condition of a property. It is not the same as an appraisal which evaluates the market value of a property. Persons involved in real estate transactions need unbiased information about the physical condition of property they plan to buy or sell and your contract should include a contingency that you obtain a satisfactory inspection report. Talk with your agent about the types of inspections available. Home Inspectors vs. Engineers Home Inspector: A person who examines any component of a building, through visual means and through normal user controls, without the use of mathematical sciences. Engineering: Analysis or design work requiring extensive preparation and experience in the use of mathematics, physics, chemistry and the engineering sciences. Finding a qualified Inspector Referrals from satisfied customers Referral from a local real estate agent or mortgage company Local consumer affairs office Yellow Pages under "Building Inspection Services" Ask if she/he is a member of the American Society of Home Inspectors (ASHI). The ASHI has established standards of practice which include the specific services, limitations and exclusions that can be expected from private home inspectors. What the inspection, at minimum, includes Every inspection should include, but not be limited to, an evaluation of at least the following: Foundations Plumbing and electrical systems Doors Ceiling, walls and floors Roof Hazardous materials concerns Heating and air conditioning systems Common areas (in condominiums) Insulation Ventilation Table of Contents

Answers to frequently asked questions...

What is the difference between "pre-qualified" and "pre-approved"? If you are"pre-qualified" you have determined, with a loan officer, what price you can afford based on the down payment, your debts and the amount the mortgage company will approve for your mortgage. Being"pre-qualified" is only a determination of your probable credit. If you are"pre-approved", your credit, employment and funds have been approved by the lender. What are closing costs? Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For buyers, they are usually about 4-6% of the total sales price of a property. Some of the closing costs you might encounter are: application fees, appraisal fee, county taxes, credit report, discount points, documentation fee, escrow fees, homeowners' association fees, loan fees, mortgage insurance, origination fees, tax registration and title insurance premium. What is a point? One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. By charging"points", the lender can bring the real estate loan up to those other investments. What is earnest money? When you make an offer, you will need to put up an earnest money deposit as a sign of good faith that you are seriously interested in buying a home. That deposit becomes a part of the purchase price and is held in a trust account until there is full acceptance of the offer. Typically, an earnest money is 1-5% of the offer amount. What is title insurance? Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy. Is VA or FHA financing unfair to sellers? FHA and VA loans provide purchasers the opportunity to buy homes with minimal cash investment and at lower interest rates. The result is a larger market for sellers, who also benefit by receiving all cash for their equity. Table of Contents

SC Real Estate License Law & Agency Relationships

SC Real Estate License Law & Agency Relationships Are you a customer or client? When you choose to work with a real estate licensee, he or she may or may not be your agent! An agent owes certain duties to a client but has a different obligation to a customer. You must know whether you are a customer or a client of a licensee in a real estate transaction and that relationship must be established and disclosed prior to beginning to work together. You should discuss the following information with the real estate licensee with whom you may work in order to make informed decisions. Who is a customer? A customer is a person who seeks to buy orsell real estate, but who does not establish anagency relationship with a licensee and, therefore, is not represented by a licensee as his or her agent. As a customer you cannot expect the licensee to act as your agent or to negotiate on your behalf. A real estate licensee can, however, provide valuable market information and services to assist you as a customer. A licensee is also obligated by law to treat customers honestly, to disclose known material facts about the property and to promptly present all offers and counteroffers. When selling or buying real estate, you may decide you don't need your own agent. Them licensee may be able to provide you as a customer with all the information and assistance you require to successfully complete a transaction. However, if you are a customer, the licensee's primary loyalty is not to you. It is to his or her client. The agent must convey all known information to his or her client, such as a seller's urgency to move if he or she represents a buyer/client or a buyer's willingness to increase an offer if he or she represents a seller/client. Who is the client? A client is a person who establishes an agency relationship with and agrees to be represented by an agent in a real estate transaction. A seller becomes a client of a real estate company by signing a formal listing agreement with a licensee associated with a company. Prior to any transaction this agreement must be in writing and must clearly establish the terms of the agreement and the obligations of both the seller and the licensee/company who becomes the agent for the seller. A buyer becomes a client of a real estate company by signing a formal buyer agency agreement with a licensee associated with a company. Prior to any transaction this agreement must be in writing and must clearly establish the terms of the agreement and the obligations of boththe buyer and the licensee/company who becomes the agent for the buyer. Who is the agent? An agent is the licensee who by mutual agreement will act on your direction and represent your interest above all others in a real estate transaction. In South Carolina once an agency relationship is created, the broker-in-charge of the company is considered to be the agent of the client, and all licensees with the company become sub-agents of the broker-in-charge representing that same client. Acting on your behalf, your agent will negotiate for you the best price and terms in a real estate transaction. Your agent owes utmost loyalty to you, the client, and must pass on to you any information he or she knows which might influence your decision to buy or sell. You can rely on your agent to preserve confidential information provided by you. You can expect to receive timely accounting of money or property related to and received during your relationship with your agent. What is a dual agent? In certain situations, a licensee acts as an agent for and may represent the buyer and seller in the same transaction provided each has consented in writing prior to the transaction. This is called dual agency since one agent represents both parties and both remain clients of the company. The possibility and consequences of such an occurrence must be explained to you by the licensee. Working with a dual agent is not the same as having your own exclusive agent! For instance, when representing both a buyer and a seller, the dual agent must not disclose to one party confidential information obtained from the other party. Also, a dual agent may not be the advocate for either party and cannot negotiate for nor advise either as to price or terms. It is important that you discuss dual agency with the licensee in order to understand the limits of representation which a dual agent can provide. If requested by licensee, you must determine whether or not you would be willing to modify your established agency relationship and give your consent, thereby agreeing to limited representation by your agent. Do you want to be a customer or a client? Do you want only to receive information and assistance (customer) or to be represented (client)? To understand your options, discuss this with the real estate licensee with whom you are working. It is important to you and the licensee that your working relationship with the licensee be estab-lished and acknowledged and that you are aware of the services you will be provided. At your discretion, it may be advisable for you to obtain legal or other professional advice which you feel necessary to protect your own interest. The signing of the acknowledgment of relationship disclosure does not alone create agency obligations (See Who is a Client?). Table of Contents