For a first time buyer:
Do you have steady employment and do you intend to stay in the area for a while?
Do you have a solid relationship with a co-purchaser?

For a second home or investment property:
Do you have some available or additional capitol that you wish to put to work? Would you like to apply excess earnings towards an investment?

Yes, then determine your buying power!
If you answer yes to the above questions then you need to analyze your buying power. A REALTOR© can assist you in determining how much you can qualify for and what value home you can afford. You may be surprised to find out just how many loan programs are available to assist you with your dream of owning a home. A REALTOR© can also provide rental income projections for second homes or investment properties. The key is to understand your borrowing power as reflected in your current income and the additional income generated by rentals from the property purchased. Again, you will be surprised at what you can afford and how it will work for you.

Get Representation, Get a REALTOR©
Information has never been more readily available to the real estate shopper as many are using the Internet to shop for properties. However, the pitfalls can be many for an unrepresented buyer. We have already introduced you to the concept of having a REALTOR© assist you in determining your buying power but there is so much more that they can do. A REALTOR© is a member of the national association of REALTORS© and their state board and local board of REALTORS©. As such they are obligated to a higher standards of professionalism and ethics than the minimum standards required of the state in which they are licensed. Not all real estate agents are REALTORS©. A REALTOR© member has the benefit of a network of fellow professionals sharing the latest information and education for the real estate industry. This means your highly trained REALTOR© representative will assist you with credit organization, property selection, contract negotiation, contingency management, due diligence inspections, and closing. This means confidence in making the right choice and getting the best value with the least surprises.

Agency
Since you are discussing sensitive confidential information your REALTOR© will explain how agency representation works. They will caution you not to disclose confidential information to them until you have decided that you have found the REALTOR© who will help you achieve your dream. They will then provide you with required agency disclosure forms and explain their fiduciary obligation to you their client.

Get Pre-Approved
One of the most valuable tools for purchase negotiation is a pre-approval letter. This tells a seller that they have an offer from a serious buyer. Your REALTOR© will work with a number of lenders and assist you in this process.

The Selection Process
Your REALTOR© will analyze your wants and needs. What is it that suits the lifestyle of your family in a home, second home, neighborhood or community? What amenities are important to you that suit your way of living? Your REALTOR© will begin by showing you properties for sale and getting feed back of your likes and dislikes. A property comparison form is provided to organize and streamline the process. By seeing the neighborhood, the size of rooms, unique features of properties you can narrow your focus and make the buying decision with confidence. Rental income projections can be formulated as a final step for the purchase of a second home.

Offer, Counter-offer, Negotiation, Contract
Once you have determined what home you want your REALTOR© will be your greatest asset and ally in the negotiation process. Their knowledge of current market conditions and your desire and motivation are key elements in determining how to structure an offer to purchase. Often a poorly represented buyer will lose their dream because they do not understand current market conditions and negotiate with only a price objective. This is but only one element of negotiation.

Contingency Management
Once the negotiation is complete and all parties sign the contract all the contingencies must be promptly managed. These can include the application for the purchase mortgage, application and delivery of condominium or home owners association disclosure documents, scheduling and access for the purpose of an appraisal, survey, home inspection and termite inspection, access and scheduling for any repairs. Each must be executed based on the terms of the contract of sale. Once again your REALTOR© is the captain of this ship steering your deal to settlement with their knowledge and problem solving skills.

Settlement, Escrow & Rental Management
The final step is settlement and the most important thing is to have no unpleasant surprises. You will be provided with an estimate of settlement charges and funds needed to settle. If any funds are set aside to complete seller obligations they are held by the settlement attorney that also represents you. They can help coordinate the transfer of utility, cable and telephone service. If your property is already under a rental management agreement you may be receiving a check for rental income for upcoming booked weeks. Part of this process is signing a new rental management agreement with the rental agent and providing tax-reporting information. Your REALTOR© will schedule a meeting with the Rental Manager for the purpose of learning how this new REALTOR© relationship will work for you through professional rental management.

Relationships and Referrals
After you have settled your REALTOR© is a source for neighborhood information, shopping and decorating ideas and service vendor recommendations. The relationship continues and your friends and family have the opportunity to be represented by your new friend.