Broker Services to Buyers
I. INITIAL MEETING
- Discuss your present and future housing needs
1. Single family home vs. condo/townhouse
2. No. of bedrooms and bathrooms
3. Square footage of home and lot size
4. Location vs. commute to work/school
5. Desired amenities and age of home
6. Your family size - current and projected
7. Any hobbies or special needs to accommodate
8. Preferred condition of the property (fixer upper?)
9. Recommendations by the Broker - Discuss financing abilities and alternatives, i.e.
1. Down payment, deposit verification, closing costs, and reserve fund
2. Income and credit
3. Debt ratios and PMI (Private Mortgage Insurance)
4. Fixed vs. adjustable rate loans
5. Differences in institutional underwriting and appraisal practices
6. Techniques to maximize purchasing power
7. Government home loan programs
8. First-time Home Buyer's programs
9. Quick-qualify home loan programs
10. What is form 4506 or 8821?
11. Broker recommendations - Special topics:
1. School system and current school rankings
2. 1031 and 1034 exchanges
3. Propositions 60 and 90
4. Declaration of Homestead
5. Rent Control
II. THE HOME SEARCH
- Input Client's housing criteria in MLS (Multiple Listing Service) database for potential matches with existing and future listings
- Review printed listings for suitability to Client's needs
1. Price
2. Location
3. Amenities - Eliminate the marginal or unsuitable listings
1. Overpriced
2. In bad condition - As needed, research listings not on Multiple Listing Service
- Arrange home tour for Client. For selected properties
1. Check sales availability with listing brokers
2. Make showing appointments with owners or tenants
3. Map out tour route
4. Drive Client to each home, commenting on neighborhood, street, etc.
5. Assist Client with each home viewing, i.e., noting the condition of:
a) Driveways
b) Sidewalks
c) Landscaping
d) Paint
e) Garage doors
f) Roof and gutters
g) Fencing
h) Floor coverings
i) Windows and doors
j) Cabinets and countertops, etc.
6. Recommend inspections by licensed professionals where appropriate or when "red flags" are evident
III. PERPARING THE PURCHASE AGREEMENT
- Clarify agency relationship position
- Broker prepares an itemized estimate of Buyer's closing costs, down payment and monthly payment for proposed home purchase
- As needed, review a Comparable Market Analysis to determine approximate fair market value
- As needed, confer with listing broker to accurately assess Buyer's negotiating position vis-a-vis the Seller
- Prepare the purchase agreement on behalf of Buyer, with special consideration being given to:
1. Purchase price
2. Deposit
3. Closing costs
4. Loan contingencies
5. Fixtures vs. personal property
6. Professional inspections
7. Flood, special study zone, and other disclosures
8. Close of escrow
9. Possession
10. Condition of the property at time of possession
11. An overall avoidance of unnecessary controversy, complications or delays - Arrange for contract presentation to Seller, listing broker, or both, as appropriate. Meet with the said parties, negotiate on Buyer's behalf, and facilitate the negotiations of any Seller's counter offer to buyer, and vice versa
IV. PROCESSING THE ESCROW
- Open escrow
- Review and forward Preliminary Title Report to Client and their lender
- Coordinate loan processing with loan officer
- Provide access and information (comparable sales) to appraiser
- As needed, order Pest Control, Roof, Property, Geological, and other Inspections
- Arrange access for above inspectors
- Review all reports, forwarding them to the Client (with translations, when needed)
- Order and schedule all repair work
- Review and forwarding all completion notices to Client
- Order and review loan documents
- Review Client's escrow instructions with escrow officer
- Schedule and conduct Buyer's "walk-thru" inspection
- Arrange Client-escrow officer sign-off meeting
- Coordinate close of escrow and possession
- Arrange for transfer of the keys to the property
- In short, handle any all problems that arise along the way!