Buying your first home is wonderful, but there are things you need to know before you venture out into the market.

Thankfully, you have me here to help you!

1. Financing and Budget

Mortgages are just like any other good that you might buy whether it be shoes, sheets, or a Chevrolet, and you can shop from one Lender to another looking for the best interest rates and other terms of your mortgage. It is possible that this can save you thousands in out-of-pocket expenses at closing as well as hundreds in mortgage notes.

Also, being denied by one Lender doesn’t neccesarily mean that you will be denied by all Lenders— So Shop Around! 

Different Lenders have different programs. 

On another note— once you are pre-approved for your Mortgage, make sure that your new mortgage payment will fit into your budeget. Your Lender will approve you for a maximum amount, but unless you want to subject yourself to mortgage slavery, make sure that the payment will leave you enough money every month to buy groceries. 

2. Use a REALTOR®

Real Estate laws can be tricky. How long do you have for inspections? Disclosures? What happens if you agree to a price that is higher than the home’s appraisal? Earnest money? Termites?

Your REALTOR® is a highly trained professional and he can help you navigate those waters that are mined with chances to sink your financial ship. He is obligated by law, as well as the Code of Ethics of the National Association of REALTOR®s, to put your welfare above his own. He can advise you about the value of comparable properties, how to demand repairs, and interface with Title Companies, and more. 

Just like your REALTOR® is obligated to protect your interests, the REALTOR® hired by the Seller is obligated to protect the interests of the Seller. That means that when you simply “call the number on the sign out front,” that the person you’re talking to isn’t neccesarily interested in your welfare at all. In fact, his job is to get every single dime that the market will allow him to get you to pay. 

YOU NEED A REALTOR® TO PROTECT YOU! 

3. CAVEAT EMPTOR

This is simply a Latin phrase that means “Buyer beware. 

In the State of Alabama, the you have several chances before closing to have every inch of the property inspected. You can have the structure, the soil, the plumbing, the A/C, roof, the sewer, and more inspected. Then, you have time periods to negotiate repairs. By the time you get to the closing table, you have had ample time to find out everything about the property, so the State of Alabama holds that you are an educated and informed buyer.

It is your REALTOR®’s job to make sure that you are, in fact, educated and informed. Once you close, if you find out later that you were not aware of things that you needed to know, you don’t have much recourse.

BUYER BEWARE!

Your REALTOR® is there to help you.

4. This is the most expensive thing that you will ever do— including emotionally. 

REALTOR®s are more than just house salesmen. We are therapists, too!

Sure, we help you navigate the finances, the contracts, the contingencies, and so forth, but we also help encourage you, motivate you, and celebrate or cry with you.

The best thing of this all, and the thing that few buyers know is that the buyer gets the servcies of a REALTOR® free of charge.

You, the buyer, will pay a certain price for your home. Let’s say that you pay $100,000 for your home.

That Seller and his REALTOR® has negotiated a commission rate for the agent. Let’s say that the rate is 6%.

That means that the Seller gets $94,000 and he pays the REALTOR® $6000 in commission. The REALTOR® is a self-employed businessman, so he takes that $6000 and pays the costs that he has incurred in marketing the property, hiring vendors like photographers, landscapers, stagers, and so forth. He also pays the salaries of his staff people, pays taxes, and so forth, and then if any money is left— he pays himself.

If you have a REALTOR® of your own represent you in the purchase, then the Seller’s Agent splits part of his $6000 in commission with that REALTOR®.

So, the buyer would pay his $100,000 to purchase the home regardless of whether the buyer uses a REALTOR®.

The only difference is whether the Seller’s REALTOR® keeps his entire commission or whether he divides that commission with your REALTOR®.

I would love to help protect your rights and make sure that you pay the absolute least for your home.