Trust

When choosing a real estate agent that will assist you best, there are so many characteristics that you will consider and look for.  Trust is likely the most important quality.  A buyer needs to be able to rely on the agent and feel confident that the agent is working for them and only them.  The buyer needs to feel as if his/her needs are being listened to and considered in the property search.  It is really important to feel that connection and be able to trust the person that will be assisting you throughout this entire process.  You need to feel that your needs are prioritized and taken seriously.  You also need to feel that the agent will help you from beginning to end and will be available to you whenever you need them. 

The value that Karin O’Connor puts on her relationships is impressive.  Her experience has taught her the value of listening and the importance of building strong relationships through trust and care.  She takes the time to connect with you personally and that in turn helps her connect you with the success in purchasing your home.

Buying Vs. Renting

A person who is deciding to buy for the first time needs to evaluate his/her situation carefully to determine whether this is the right time to purchase.  In most cases it is more advantageous to be a property owner than a renter, but the following considerations should be evaluated.

Advantages to Buying:

• Property builds equity
• Several tax write offs
• Opportunity to change décor, landscaping, etc. to make it your personal home
• Costs to live there do not change, whereas rents do
• More stability because you can stay as long as you want
• Not dependent on landlord to maintain the property

Reasons not to Buy:

• Plans are uncertain where you will live/work in the upcoming year
• Unwilling or unable to be responsible for maintenance

In considering your overall monthly costs, in most cases it is less expensive to buy than to rent, so you really might as well have your money go towards a mortgage than toward your landlord’s mortgage.  If you end up needing to move, you can always rent out your property or sell and make a return on your investment.

How much can I afford?

With banks willing to lend more and more money, it is crucial that you decide where your comfort level is for monthly expenses and base your purchase price on what you can adequately afford.  As tempting as it is to buy a better property at a higher price point, you will not be happy if you do not have any money left over to spend on the things that you enjoy.

Mortgage Calculator:

Once you determine a price range that you are comfortable with, it is a good idea to re-evaluate with your agent the type of property that you would like to buy and the neighborhoods that you would consider.  Often after determining the price range there is a period where there may be some changes in your search criteria.  This is a crucial time because this is when you need your agent to listen to your needs, hear your ideas and be able to brainstorm with you to determine possible options and alternatives.  When you have an agent that is flexible with the neighborhoods that he/she covers and the types of properties that he/she shows, this evaluation and possible transition will be seamless.  This is important because you do not want to give up the hope of buying and you want the experience to still be worthwhile.  Karin O’Connor’s familiarity with several neighborhoods and knowledge of vast types of properties will keep you in the market and will continue to help you fulfill your goal of home ownership if any changes need to occur.

Home Buying Time Line

The time frame between when you first submit an offer to the day you take ownership can vary from property to property, but this outline is a general time frame that is commonly followed.

Offer to purchase: The offer is usually good for between twenty-four and forty-eight hours from when it was made.  During this time the seller needs to respond to your offer, either by accepting it or negotiating on the price and the terms.

Inspection Contingency: Once an offer has been accepted, the buyer has seven to ten days to schedule the home inspection.

Inspection Response: Following the inspection the buyer has two to three days to identify any issues that he/she wants the seller to address.  It is very important that this deadline is followed so that the buyer has an opportunity to negotiate.  If the deadline passes, the buyer is unable to request for any inspection issues to be addressed and then proceeds forward to the purchase and sale agreement.

Purchase and sale signing: This occurs usually one week after the home inspection and two weeks after when the initial offer was accepted.  This is also the time when the down payment agreed upon in the offer is due from the buyer.

Loan application: Usually buyers begin the work on their loan prior to signing the purchase and sale agreement, but the deadline to begin this process is one day after the purchase and sale agreement date.  This gives both the buyer and the bank enough time to complete all the work necessary before closing.

Mortgage Commitment: Once the purchase and sale agreement is signed, the bank has three to four weeks to process all of their paperwork and give you a full approval that you are ready to close on the property.  In conjunction with an attorney, the bank during this time has the title search completed for the property and has the property appraised, in addition to evaluating the buyer’s ability to borrow money for the property.

Walk-thru: Usually twenty-four hours prior to or on the day of the closing, the buyer will be given the opportunity to return to the property for a final time in order to inspect the condition of the home.  Any issues that were addressed form the inspection should be checked to verify that they were completed correctly. The property should be as the buyer remembers it and anything that was supposed to be removed form the property should be at this time.  Likewise the buyer should verify that anything that was supposed to stay in the home as part of the sale remains.

Closing: While the closing time can vary greatly depending on the property and the needs of the seller and the buyer, it usually occurs between thirty and sixty days from the time of the initial offer.  Once the bank gives the buyer the commitment to close, the time and the place is decided upon by the buyer, buyer’s attorney, the seller and the seller’s attorney.  It sometimes occurs at the Registry of Deeds, at one of the attorney’s offices or at one of the broker’s offices.  At this time the buyer and seller sign all of the necessary paperwork to legally transfer the title of the property from the seller to the buyer and the keys are exchanged for the new home.

Real Estate Glossary:

There are so many unfamiliar terms and definitions that arise on a regular basis during the buying process.  If you are buying for the first time, all of this new material can feel overwhelming.  Hopefully this reference guide will help you to learn to talk like an expert or at least understand what is going on.

MLS: Multiple Listing Service – A statewide computerized listing of available properties that all real estate professionals access in order to list properties for sale and find properties for buyers to view.

LINK: A computerized listing service of properties, similar to MLS, except with more of a focus on properties in the various Boston neighborhoods.

Listing Agent: A real estate broker or agent that is hired by the seller to service and market the property.  They are paid by the seller if the property is sold.

Selling Agent: The broker or agent who is responsible for the sale by bringing the buyer to the transaction.  This broker shares the commission with the listing broker.

Buyer’s Agent: A specific broker working solely for the buyer to represent their interests in the purchase of real estate.

Seller’s Statement: A completed form providing in-depth information about the age, condition and components of a property.  It discusses every aspect off the property, such as taxes, heating system, electrical system, fees, etc.

Comparative Market Analysis: A written estimation of the market value for a property used to determine the listing price, which is based on similar properties in the same neighborhood.

Comps: Term used to describe other properties that have sold that are similar to the property of interest.  A buyer’s agent can provide this prior to the buyer making an offer so that he/she can best determine the offer price.

Offer to Purchase: A written agreement that is accompanied by a deposit check and presented to the seller.  If this is signed by both the buyer and the seller, it becomes a legally binding contract.

Contingency: A specific condition that must be satisfied before the contract may be considered binding.

Market Value: An estimate as the highest price a property might bring if sold in an open market.

Assessed Value: The valuation placed upon a specific property by a public tax assessor as the basis for taxes.

Appraisal: A report made by a qualified professional as to the current market value of a specific property at a give date.  Banks require an appraisal to ensure that the property’s value is supported by other comparable sales.

Inspection: A buyer performs an inspection prior to signing the purchase and sale agreement to determine the conditions of the plumbing, heating, cooling and electrical systems.  The structure of the building, condition of the roof, exterior, windows and doors are also examined.  If the buyer is not satisfied with the inspection, he/she can cancel the contract, negotiate a new sales price or ask for the repairs to be addressed by the seller prior to closing. 

Purchase and Sale Agreement: A written, in-depth agreement providing information about the price and financing terms as well as all the provisions.  It is accompanied by a deposit or down payment.  Once signed by both the buyer and the seller, it becomes a legally binding contract.

Down Payment: The difference between the sale price and the mortgage amount.  The down payment is made up of the initial deposit at offer (usually $1,000.) and the money paid at the time of the purchase and sale agreement.

Escrow Account: An interest bearing account held by either the attorney or the seller’s agent.  This usually consists of the down payment money.  Upon closing, after the bills are paid, this money is distributed to the seller as proceeds of the sale.  The interest is distributed to the buyer.

Title: The document representing ownership of a property.  The title is transferred from seller to buyer at closing.

Certificate of Title: A document stating the seller has a marketable insurable title.

Deed: A legal written document by which title is transferred. 

Walk-Thru: A final inspection of the property by the buyer prior to closing.  This is used to determine if all of the contingencies of the contract have been satisfied.  If not, money can be held in escrow from the seller until all terms of the contract are met.  

Closing Costs: These may include attorney fees, agent fees, state deed transfer taxes, water adjustments, loan discount fees, mortgage payoff penalties, interest up to the day, and taxes and fees on a pro-rated basis.  These are presented prior to closing for review, also known as the HUD or Settlement Statement.

Closing: A meeting that typically includes the attorneys for the buyer, the seller and the bank, the buyer, the seller, the listing agent and buyer’s agent.  Any warranties, special instructions and keys should be brought to the closing for exchange. Mortgage, note and adjustment sheets are signed by the buyer and the seller signs the adjustment sheet.  It is customary for the seller to receive the proceeds of the sale at the closing.

Conveyance: The deeding or transferring of title from one person to another.

The Agent for First Time Home Buyers Makes All the Difference:

In most cases, first time home buyers know very little about buying a home and about financing a home.  Therefore they need help from someone that they can trust and who will look out for their best interests.  They need advice and advocacy.

Prior to Karin O’Connor becoming one of Boston’s most preferred and respected real estate agents she was a social worker who served severely mentally ill homeless people.  By working with this delicate, yet demanding population, if there is anyone who has mastered advocacy, it is Karin.  Her skills will not only help you negotiate the best offer for you with terms that protect you, but she will also provide other crucial services that will make the difference throughout this process.  She will perform a comparative market analysis to determine market value and then suggest an appropriate price to pay.  She will connect her buyers with the best financing resources in New England so that as a buyer there will be options where you can get the best loan for your needs at the lowest costs.  She has the best contacts that also specialize in working with first time home buyers, which will make the financing process smooth and understandable.  Karin will also connect you with the top home inspectors and attorneys who will assist her in advocating for all your needs.  This team approach ensures that you as the buyer benefit and you will have all the assistance you need every moment during the buying process.

Advocacy is certainly important, but along with the experience, the patience and calmness that Karin brings to any transaction, these vital qualities will help the first time home buyer remain calm and as stress free as possible, which really matters during this time.

Another advantage of working with Karin and another way that she will go beyond what most agents will do for you, is in the home searching process itself.  If you change your mind about the  location and want to change your search to a new neighborhood, there will not be a problem.  In fact, since Karin covers so many neighborhoods, she will educate you about various locations and help you to make this transition in your search.  She will locate for sale by owner listings that can often get overlooked in a housing search.  If you have identified a particular building or street that you like, Karin will use her resources to identify properties in the building or neighborhood that are not actually even for sale, but can make the properties possibilities for you.

The list goes on of why buyers are better served for all of their home needs with Karin O’Connor.  Call or email her today to set up an appointment to meet or you can just get started by having her answer some of your questions.  She is your real estate connection and will be happy to assist you in any way that she can.