Nashville
Homebuyer's Guide
Whether you're taking your first steps into the real estate market, a seasoned investor, or find yourself somewhere in between, Elise Stein offers an unparalleled wealth of market knowledge and expertise to transform your real estate aspirations into tangible achievements.
The Steps For Success
Buying a home can be a tricky process. Knowledge is key. Let's take a look at the process of buying a home.
PREPARE
Step 1
This is your first step, and consist of getting your pre-approval letter from your lender, signing the buyer agency agreement, and searching for
your home.
CONTRACT
Step 2
Once you find the home that fits your needs, I will write the offer. We discuss what contingencies you may want. If the sellers come back with a counter offer I will talk with you and negotiate on your behalf.
CLOSE
Step 3
Review the closing disclosure provided by your lender, ensuring that the terms and costs align with expectations. Arrange for the necessary funds to cover the down payment, closing costs, and any additional expenses outlined in the disclosure. By completing these steps, you pave the way for a successful closing on your new home.
Pre-Approval
To ensure a positive impression with sellers, it's crucial to demonstrate your financial readiness to purchase. Every offer you submit should be accompanied by a pre-approval letter. To obtain this essential document, please consider preparing the following information:
Your social security number for a credit check
Last year's tax returns
Two most recent paystubs
Last year's W2
Two most recent bank statements
Home Search
Key Questions to Ask in Today's Dynamic Market
How quickly are homes coming off the market?
What are my top "must have's" in a home?
How likely am I to encounter a multiple offer situation?
Am I okay with renovating the home?
Top Buyer Concerns
-
Affordability - Can I afford the cost of the downpayment, mortgage payment, property taxes, etc.?
-
Property Conditions - Are there any major issues with the property that might lead to costly repairs in the future?
-
Competition - Fear of losing out on desired property to other buyers. Bidding wars and multiple offers can create anxiety.
-
Future Value - Concerns about future resale value and investment returns.
-
Neighborhood Safety - Safety and security concerns of the neighborhood they are buying in.
Negotiate
Navigating Negotiations in Real Estate
In the realm of real estate, negotiations encompass a multitude of vital contract points. While price stands out as the most apparent aspect, it's crucial to recognize that other factors also hold significance in the negotiation process.
​
Terms hold equal importance to the price. Considerations such as aligning your closing date with the seller's needs, demonstrating strong qualifications with a reputable lender, efficiently navigating contingencies, and determining whether you have sufficient funds for your own closing costs or require negotiation with the seller all contribute to the overall negotiation process.
​
Timely responses are crucial. Time plays a crucial role. Swiftly addressing counteroffers is essential as sellers closely observe your responsiveness throughout the contract-to-close process. Demonstrating your ability to work efficiently and promptly contributes to a favorable impression and fosters smoother negotiations.
​
Gain the Upper Hand: Uncover Hidden Details. The party armed with the most information tends to excel. Is the seller driven to expedite the closing process due to job relocation or other circumstances? Have they turned down prior offers? By conducting thorough background research, I equip you with the knowledge needed to formulate well-informed offers and counteroffers, positioning you for success in your negotiations.
Contract
What Goes in The Contract
Buyer Representation Agreement explicitly outlines the responsibilities I undertake as your dedicated agent. It's important to note that this agreement does not impose any obligation on you to cover the costs of my services. Rest assured, the commission for the home you ultimately purchase will be borne by the seller, ensuring that you can benefit from my assistance without any direct financial burden.
​
The Vital Core: Purchase & Sale Agreement stands as the cornerstone of the contract. Within the ten pages of its contents lie the comprehensive details of the offer, encompassing crucial elements such as price, timelines, contingencies, and more. This document serves as the vital framework that outlines the terms and conditions, ensuring clarity and transparency throughout the transaction process.
​
Counter Offer Form: Modifying the Offer Using this form, counteroffers are crafted by making changes to the original offer. All terms in the original offer remain unchanged, except for the modifications specified on this form.
​
Confirmation of Agency serves as the official document that solidifies the representation for both the buyer and seller involved in the transaction.
​
Disclaimer Notice is a crucial document that highlights the role and limitations of real estate brokers. It explicitly states that brokers do not fulfill the functions of home inspectors, termite inspectors, and other related roles. Instead, the notice advises engaging independent, qualified professionals for thorough inspections, ensuring comprehensive evaluation of the property.
​
Property Condition Disclosure form is provided by the seller unless exempted. This form, completed to the best of the seller's knowledge, outlines the property's condition. However, it does not replace a licensed inspector's home inspection. Upon receipt, you acknowledge it by signing a copy.
​
Home Inspection & Survey As part of your due diligence, it is your responsibility to obtain a home inspection and survey. These assessments provide valuable information about the property. Familiarize yourself with available inspection options and expectations to make informed decisions during the buying process.
​
Repairs/Replacements Amendment: Finalizing Negotiated Changes
After the home inspection, requested repairs are negotiated and agreed upon. The Repair/Replace Amendment form is then completed, signed, and added to the contract, solidifying the agreed-upon modifications to the property.
​
Notification Form serves as an official means of providing written notice from one party to the other within the context of the Purchase and Sale Agreement. It ensures compliance with the agreement's provisions regarding the exchange of information and notifications between the involved parties.
​
Tennessee Association of Realtors (TAR) Contract and Forms: Your Transaction's Backbone
Our transactions rely on the comprehensive suite of over 100 forms provided by the Tennessee Association of Realtors (TAR). These forms cater to various scenarios, accommodating the diverse nature and complexity of each deal. While the specific forms employed may vary, these essential documents form the foundation of every transaction, ensuring clarity and adherence to established standards.
Appraisal
Appraisal: Assessing Property Value
In the realm of real estate transactions, it is imperative for your lender to determine the worth of the house you intend to purchase in relation to the amount you are willing to invest. Since the lender provides the loan, it is essential for them to assess the property's value, as they would be responsible for the property in the event of a default.
An Appraisal is Defined As...
-
​A written evaluation of a property's market value, conducted by an independent third-party appraiser.
-
This estimation is derived from a diligent market analysis that considers recent sales of similar properties and takes into account the physical condition of the subject property.
-
The appraisal serves the purpose of ensuring that the home meets the minimum property standards set by the lender.
Your Loan Obligations
Within 3 Days:
-
Take the necessary steps to apply for the loan and cover the expenses associated with obtaining a credit report.
-
Provide the seller(s) with the name and contact info of your lender.
Within 14 Days:
-
Request that the lender orders the appraisal and pay for it.
-
Secure homeowner's insurance
-
Promptly notify your lender of your intent to proceed. Ensure that you have the necessary funds available to close the transaction in accordance with the loan estimate provided.
Inspection
Unbiased Inspection: Evaluate the Home without Financial Influence
-
Engage a licensed home inspector and if possible, schedule a meeting with them at the end of the inspection to review the findings and discuss any concerns while still on-site.
-
Have a meaningful conversation with the inspector to fully understand the inspection results. Remember, as a licensed REALTOR®, I do not interpret home inspection reports, so don't hesitate to seek clarification or additional information from the inspector.
-
Seek the inspector's expert advice on which repairs to request. Collaborate with the inspector to create a comprehensive list of repair items that need to be addressed.
-
Provide the seller with the list of requested repairs and wait for their response. The seller may choose to accept, counter, or reject the repair requests, which may potentially lead to contract termination.
-
Once both parties have reached an agreement on the repair requests, the list is transferred to a Repair Amendment, which is signed by all parties involved to formalize the agreed-upon repairs.
By following these steps, you can effectively navigate the inspection process and work towards resolving any identified issues with the property.
An Inspection Is...
-
An evaluation of the physical condition of a property, including its structure, construction, and mechanical systems.
-
It identifies any necessary repairs or replacements.
-
The inspection provides an estimation of the remaining useful life of major systems within the property.​
An Inspection Is NOT...
-
An objection to any cosmetic components of the house.
Closing Check List
Provide any additional documents the lender request.
Arrange in advance for the utilities to be transferred into your name.
Sign the Closing Disclosure form three days before closing day.
Schedule wire transfer for closing funds.
Complete final walk through.
Sign the closing documents with Title Company.
Congrats!! You're a homeowner now.
Closing Partners
Lender
-
Complete loan documents and submit to underwriting.
-
Provide lender with any additional required documents.
Title Company
-
Prepares and distributes the closing disclosure, which serves as an accounting of the transaction. It is vital to sign and acknowledge receipt of a copy at least 3 days prior to the closing date.
-
Furnishes wire instructions to facilitate the payment of your closing costs and downpayment.
-
Arranges for title insurance, a requirement by lenders that safeguards against potential title defects.
-
Compiles the necessary closing documents and guide you through the signing process, ensuring a smooth and well-informed completion of the transaction.
RECAP
30 Days
10-14 Days
$500-$1500
1%
2-4%
Usual time between contract to close
Average time period for inspection and appraisal buyer due diligence
Typical costs of appraisal and inspections
Standard percentage from purchase price for earnest money deposit. Will be applied to closing cost
Typical closing cost based off the purchase price. This covers taxes, insurance, mortgage loan origination, etc.
