Buying Charlotte County, FL Real Estate

Buying a home

Before looking at property, it's a good idea to get prequalified for a loan if you're like most people and can't pay cash. Otherwise, a lot of time and energy can be spent on looking at homes that you may not be able to buy. So, you may want to ask a local lender (call me if you need help in finding one) to provide a prequalification letter. They will probably need things like the past two years of tax returns, a couple of recent months of bank statements, your social security number, proof of income, address, etc. Once you have the prequalification letter in hand, you're ready to look at homes. Since real estate agents are paid by commission, it's often best to find one agent that you can trust. Real estate agents have access to all homes listed on the multiple listing service no matter what company originally listed them. So, there is no need to go from agent to agent. In fact, an agent will generally work harder for you if they know you won't be going to every other agent in town.

The Offer
Once you've found a home that you would like to buy, it's time for your real estate agent to fill out an offer form. It is at this time that you will normally need to provide what is known as earnest money. This money signifies that you are serious about wanting to purchase the home. It will be held in "escrow" until you purchase the home. Never make the check out to the agent. It is always made out to the real estate company or holding company. You'll find that there is no fixed amount of earnest money. Often, companies would like to get 10% of the offered price, but an acceptable amount is whatever everyone can agree upon.

Often buyers will ask the agent what to offer for a house, but there is no standard answer for that either since each seller is different. Although some sellers expect to sell the home for the full list price, many understand that buyers often like to negotiate. So, what to offer? The answer is, of course, what you feel comfortable with. Sometimes homes are actually a good buy at the list price. And sometimes they're not. Once you've looked at a few homes, you'll get a feel for market conditions.

This is also the time to add any desired contingencies to your offer such the financing contingency. Or, if you need to sell another property first, make sure you include that in your offer. If you have a good agent, they will help you to get the offer filled out properly.

Next, the agent will contact the listing agent (if different) and present the offer. If the seller signs the offer right away, the contract is complete. However, the seller may give a counter-offer and the negotiations will continue until all terms are agreed upon. Next is the waiting....

During this time it's good to get prepared for your move. However, it is NOT a good time to make major purchases (such as a car) that you will make payments on. When the closing day comes, you'll probably be asked if anything has financially changed for you. Therefore, if you've purchased too many things in the interim, you may no longer be eligible for your home loan!

While you're waiting for the final purchase of your home, many things must be done. There are many costs involved in the closing (completion) of the sale. Generally, property and termite inspections are completed at your expense. Also title insurance is prepared. Closing and/or title companies are chosen and paid for according to the offer/contract that you previously signed. Commonly in Charlotte County, title insurance is paid for by the seller. However, in other areas of Florida, title insurance is paid for by the buyer. Then there are other costs involved such as doc stamps, recording fees, taxes, etc. Most of these costs are lumped together and just called closing costs. However, these costs can amount to thousands of dollars. An approximation of these costs is shown on a "good faith estimate".

The buying of real estate is the largest financial investment many people make. Whether buying for the first time or selling a family estate, Realtors® take a complicated maze of requirements and, with knowledge of the local real estate market, simplify the process. They also maximize the profit.

Realtors uniquely understand legal issues that affect real estate transactions, and they’re trained to negotiate the best possible prices and terms in the contract. Perhaps more importantly, they offer professional advice and objective insight into a process that, for many, is very emotional.

On the nuts-and-bolts level, Realtors have a complete list of area homes for sale, as well as all the data buyers need to know; they stay abreast of changing market conditions that can affect local real estate prices. Realtors can also recommend reliable local lenders, real estate evaluators and insurers to help the transaction process proceed smoothly.

Why a Realtor?

Realtors adhere to a strict code of ethics approved by the National Board of Realtors (NAR). The code assumes that people conducting a real estate transaction must adhere to a higher set of standards that those people working in other business arenas. Realtors are, according to the Realtor Code of Ethics and Standards of Practice, "zealous to maintain and improve the standards of their calling."

The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 90,000 members in 70 boards/associations.

Buying a home

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