The Buyer's Agent represents the buyer who is purchasing the property in the real estate transaction. This agent owes full fiduciary responsibilities, duties, and loyalty to the buyer. The Buyer's Agent works for the buyer and has the buyer's best interests in mind throughout the entire transaction process.

As your Buyer's Agent, you can be assured of confidentiality and loyalty as I assist you in all aspects of buying a home, including the following:

• I will listen to you carefully as you tell me what you want and what you need.
• I will assess your specific needs and find homes that meet your specifications and price range.
• I will research the homes that you are interested in.
• I will help you determine what offer to present.
• I will present all offers on your behalf and negotiate with your best interests in mind.

Work with a Real Estate Professional

Purchasing real estate is a complex and major transaction that involves many details. An experienced real estate agent can guide you through the process and help you avoid costly mistakes. A Buyer's Agent is one who represents your needs in the transaction. Similarly, the seller will have a Seller's Agent representing them.

Obtain Financial Pre-Approval

One of the biggest mistakes a home buyer can make is not getting pre-qualified or pre-approved for a loan. A pre-qualified loan means a lender takes information from you and has run an infile credit report. Based on your information and the credit report, they can issue you a pre-qualification letter. A pre-approved loan is one in which you and the lender have gone through all of the documentation, and a full credit report is ordered. You benefit by having your loan pre-approved in several ways:

• You eliminate any surprises about your ability to borrow by providing the lender with the information up front. If there are questions about income, credit, or down payment, you can address them and resolve them without the last minute panic that can occur if you have not been pre-approved. Many times, credit reports are showing wrong information.


• You are negotiating with the seller from a much stronger position. It shows the seller that you not only can afford the home, but also there will be no surprises in your loan process later. This can also be helpful if you find yourself in a situation where there are multiple buyers bidding on the same property. The seller will be most apt to pick the buyer who has confirmation that the loan will go through. One of the seller's biggest concerns is that a buyer will not qualify for the loan to buy their home and it will create the necessity to re-market the home and disrupt the plans the seller has made. Since this is one of the main reasons real estate transactions fall through, the sellers concerns are warranted.

Pre-Qualification can be done by phone, e-mail, or fax, and there is no obligation or cost to you.

Hollee Jo Vail Advantage: Drawing on my experience, I will put you in touch with a reputable and competent Colorado Lender.

Select and View Properties

Once you have obtained pre-approval and have determined your affordable price range, you an begin to select and view available homes and new construction models. Having a set of guidelines based on requirement is essential to making decisions based on facts and not just emotions.

Hollee Jo Vail Advantage: Together, we will determine which neighborhoods are most likely to meet your needs. We will discuss which home features you absolutely require and which ones are optional for you. My experience with all parts of Colorado Springs and its surrounding areas will ensure that I will be able to guide you to the ones that match your lifestyle.

It is recommended that you keep notes and photos of houses you have seen. If you write down the unique features, as well as the pros and cons of each home you are considering, you will not have to rely strictly on memory.

Some important questions to ask when viewing a home include:

• how long the property has been for sale
• whether or not the price of the property has been reduced during the listing period
• whether there have been other offers to purchase

The answers to these questions help determine how motivated the seller is and give you added leverage in negotiations, should you decide to make an offer.

Offer to Purchase

When you have identified a home that meets your needs, it is time to make an offer and negotiate. Your rights and obligations will be detailed in the Contract to Purchase Agreement.

In addition to the offer, you will need to put up an earnest money deposit as a sign of Good Faith that you are seriously interested in buying the home. That deposit becomes a part of the purchase price and will be held in a trust account and credited back to you at closing toward your closing costs or down payment. The amount of earnest money varies. However, it is normally 1 - 2% of the sales price of the home.

Your offer will then be presented to the seller with your pre-approval letter attached to ensure the seller you are a qualified buyer. The seller will either accept, reject, or counter the Contract to Purchase. Once a contract or counterproposal has been agreed upon, you will proceed with the property inspection and secure your mortgage as well. If your offer was rejected, or you were unable to come to a final agreement, your earnest money check will be returned to you.

Inspect the Property

The Contract to Purchase will have a written provision that your contract is to be contingent upon a satisfactory home inspection report. The seller is required to provide you with a Property Disclosure, which states what is included, what is not included, what is working, and what is not working in the home.

The Contract to Purchase will include an objection date by which this must be done. Any items that you may request the seller to repair or replace must be submitted in writing. The seller has a resolution deadline to respond to your request. At that time, if you and the seller do not agree on the inspection objections, you have the right to terminate the Contract to Purchase.

I can recommend to you some licensed professionals for this crucial step. It is essential that the Property Inspector be someone hired by you, not the seller. In addition, I recommend that you be present during the inspection. You will learn a great deal about the general condition of the house and how the various systems operate. The written report will include information on the condition and remaining life span of the foundation, roof, walls, doors, floors, electrical and plumbing systems, heating and cooling systems, and much more.

Title Insurance and Approval

It is the seller's responsibility to provide you with Title Insurance. The title search is done by a Title Company, and a title commitment will be provided to you before the title deadline in the Contract to Purchase. If there are any judgments, liens, or recorded easements, they will show up on the title commitment. It is the seller's responsibility to take care of any problems with the title company and assure you clear title.

Your lender will assign an appraiser to go out and appraise the property. The cost of the appraisal will either be paid by you up front when you apply for your pre-approval, or at closing. The property must appraise for the purchase price or above. If it does not, you have a few of choices.

1. terminate the Contract to Purchase
2. ask the seller to adjust the sales price
3. pay the difference in cash and continue with the contract.

Hollee Jo Vail Advantage: We will review the title together so you are assured that you will be receiving a clear and clean title.

Closing

The Closing is the process by which the title to your new home will be transferred to you, homeowners' insurance will be verified, the terms of the mortgage will be finalized, and the keys to the new house will be given to you. In the state of Colorado, the property belongs to the buyer as of the day of closing and Delivery of the Deed. Unless otherwise stated in the Contract to Purchase, the seller must be completely out of the property by the time and date of the closing.

Hollee Jo Vail Advantage: As your Buyer's Agent, I will attend the closing with you. This will take place either at the title company or at the Selling Agent's office. Beforehand, I will clarify any aspects of the closing that are not familiar to you. I will also inform you of the amount to bring to closing in the form of a cashier's check made out to the title company.

Here are some important facts that you should know before buying a home. These tips will help you avoid making costly mistakes.

Rely On An Experienced Buyer's Agent.

A Buyer's Agent can save you money by using years of successful negotiating experience on your behalf.

Get Financially Pre-Approved.

This will let you know how much you can comfortably afford to spend. Plus, you will have the opportunity to lock in a specific interest rate..

Obtain a Comparative Market Analysis.

Obtain a report showing what similar homes in the area have sold for, as well as the difference between their asking and selling prices. Armed with this knowledge, you can be sure your offer is reasonable.

Understand Negotiating Styles.

Insisting on the lowest possible offer is not always the best tactic because it tends to alienate the seller. Relying on years of experience closing real estate transactions, I can select the negotiating style that best fits your situation.

Hollee Jo Vail Advantage: Relying on years of experience closing real estate transactions, I can select the negotiating style that best fits your situation.

Read The Details in the Offer To Purchase.

Wrong assumptions about what is included and what is not included in your Offer can lead to increased costs.

Hollee Jo Vail Advantage: I will explain the agreement to you so there are no last minute surprises.

Rely on Facts.

Too often buyers rely strictly on their emotions rather than on facts when deciding to buy a home.

Hollee Jo Vail Advantage: I will help you keep your emotions in check while providing you with the facts you need to ensure a smart decision.

Selecting the right home is not an easy decision. How do you balance rational reasons with emotional factors? Consider these thoughts concerning evaluating the neighborhood and the home itself.

Read The Details in the Offer To Purchase.

Wrong assumptions about what is included and what is not included in your Offer can lead to increased costs.

• If you have children, you will most likely want a neighborhood that is family-oriented, so that your children will have other children around to play with.
• Families will also want to look into the quality of the local school districts. While all the school districts are good, if your child has special needs, it is very important to evaluate the schools to determine which one best fits your requirements.
• If you like sports, you may want a neighborhood that features jogging paths, parks, tennis courts, etc.
• Determine the proximity to work or school and decide whether this is an important issue for you. Check out the proximity to shopping and recreation centers.
• Drive or walk around the neighborhood you are considering. Notice the condition of the houses in the area. Homes in good condition indicate a pride in ownership that has a positive impact on property values.
• Visit the neighborhood at different times of the day and pay attention to the amount of traffic and noise.
• Find out about crimes in the area. The local police department can provide you with statistics on how many and what types of crimes have been committed in each area.
• Do you need a location where you can keep horses or other animals?
• Do you want city or country living?

Hollee Jo Vail Advantage: I will provide you with the various test score results for the various school districts. We will take a look at all the neighborhoods that meet your needs and lifestyle. Each neighborhood has its own personality and I will help guide you through the process of choosing one.

Evaluate the Home

Decide ahead of time what features you want to have in a home. Some features you will absolutely need, and others may be an option. Here are some things to think about:

• Do you want a new home or a resale?
• How many bedrooms and bathrooms do you need?
  
• What style of home -- Contemporary, Traditional, Southwest?
  
• What type of floor plan - Two Story, Ranch, Tri-level?
  
• Do you need a basement - finished or unfinished?
• Do you want a large or small lot?
• Do you want acreage for animals?
• Do you want to live in the city or the country?
• Do you want views of the peak or front range?
  

Make a list of the amenities you would like to have in your home. Here are a few to think about:

• Eat-in kitchen
• Greatroom or Familyroom
• Formal living and dining area
• Master suite with 5 piece bath
• Number of bedrooms on the same level
• Where do you want the laundry room
• Number of fireplaces
• Air conditioning
  

As you view the different homes, write down the pros and cons of each one. Evaluate how each one measures up to the criteria you have established. Your efforts will go a long way toward assuring that the home you buy is the right choice for you!

A home inspection is an essential step in the Buying Process. A Seller is obligated to disclose to the Buyer all known facts that affect the value of the home and that may not be readily noticed. But there are often defects that the Seller does not know about. A licensed and certified Inspector can uncover structural and system problems that may have significant bearing on the price you pay for your new home.

It is a good idea to accompany the Inspector when he examines the home. As he works you can be on the lookout for the following warning signs that may indicate costly problems:

The Roof

• stained or sagging ceilings
• peeling plaster
• missing or cracked roof tiles

The Heating System

• abundance of repair stickers indicating multiple service calls
• lack of service history

The Plumbing and Electrical Systems

• bathtubs and sinks do not drain well
• extra-long extension cords in use

The Outside and Yard

• cracks in the foundation
• pooling water from improper drainage
• missing or cracked roof tiles
• soil instability indications such as warped doors, locks that don't engage properly, sloping floors
• indications of a possible easement on the property
• potential noise problems such as proximity to commercial businesses

Pet Problems

• noticeable odors or carpet stains
  
• proximity to homes containing barking dogs

When you apply for a mortgage, the lender is required to provide you with a "Good Faith Estimate of Closing Costs." That document explains the estimated costs that will become due at the closing. Some of those costs, along with other common closing costs are defined below:

Application Fee: Charged by lender to cover fixed costs associated with mortgage loan processing.

Appraisal Fee: Charged to have a licensed professional appraiser certify the value of the home being purchased.

Closing Fee: Charged by the title company to prepare all the closing papers, settlement sheets, warranty deed, and proration of taxes. Usually split: 1/2 Buyer and 1/2 Seller.

Credit Report Fee: Charged by the lender to receive a detailed copy of your credit history. The lender will require a credit report from all three agencies.

Discount Points: Each point is equal to 1% of the mortgage and used by the lender to adjust the yield on the mortgage. The borrower can secure a lower mortgage interest rate by paying more points. Homeowner's Insurance: At the Closing, a one year premium must be paid in advance.

Loan Closing Fee: Charged by the lender to finalize the mortgage.

Loan Origination Fee: Usually 1% of the loan.

Private Mortgage Insurance (PMI): When the down payment is less than 20% of the purchase price, the lender often requires this insurance.

Recording Fee: Charged by the County Recorders Office to officially record the deed and mortgage, and to transfer taxes.

Survey Fee: Charged for verifying the boundaries of the property being purchased.

Title Insurance: Charged for insurance that protects the lender by guaranteeing that the property's title is without legal defects.