Here you will find answers to many Frequently Asked Questions regarding Maine State Real Estate Practice.
|
1) How do I find an agent to work with? 2) What can one agent offer that another may not? 3) What does multiple listing mean? 4) How is a client different from a customer? 6) When should I find a bank or mortgage company? 7) What is the secondary market? 8) Is it important to have a home inspection? 9) What is the difference between an inspection and an appraisal? 10) How do I make an offer after finding the right property? 11) After I find a home to buy, how long does it take? |
|
|
How Do I Find an Agent to Work With? First of all, you should find someone with whom you are comfortable, someone you can trust who can guide you through the buying or selling process. I have always felt that honesty and integrity are foremost in a professional relationship and critical to a successful outcome. Agents who are REALTORS® adhere to a comprehensive and strict Code of Ethics. What Can One Agent Provide that Another May Not? Everyone has individual talents and experiences that they bring to their daily interactions. Real Estate agents are no different. They are all individuals with different life experiences, education, talents and interests. If you are looking for representation in a specific type of property you may wish to find an agent with experience in that area. What Does Multiple Listing Mean? Just about all Real Estate agencies cooperate with other agencies in showing and selling their listings. When an owner decides to sell a property he/she finds an agent to represent him/her in the marketing and sale process. The agent lists the property in the Multiple Listing database where it is available to agents statewide. It also will appear on "realtor.com". If you are looking to purchase a property the agent with whom you are working has all listings available to review with you whether listed with that agent's office or another. Most of the time the agency that has the listing has already agreed to share its commission with the agency representing the buyer. How is a Customer Different from a Client? If you are interested in buying or selling residential real estate in the State of Maine, it is important to understand that Maine Law provides for different levels of brokerage service to buyers and sellers. You need to decide whether you want to be represented in a transaction as a client or as a customer. Please review the following information about real estate brokerage relationships to help you decide which is in your best interest. Maine Law requires all real estate brokerage companies and their licensees to perform certain basic duties when dealing with a buyer or seller. You can expect a real estate licensee with whom you are dealing to provide the following customer-level services: * To disclose all material defects pertaining to the physical condition of the real estate in question that are known by the licensee. * To treat the buyer and the seller honestly and not knowingly give false information. * To account for all money and property received from or on behalf of the buyer or seller and; * To comply with all state and federal laws related to real estate brokerage activities. Until you enter into a written brokerage agreement with a licensee for client level representation you are considered a "customer". The licensee is not your agent. As a customer you should not expect the licensee to actively promote your best interests or to keep any information that you have shared confidential including your bargaining position or strategy. If you desire client level representation you must execute a written agreement that creates a client-agent relationship between you and the licensee. As a client you can expect the licensee to provide the following services in addition to those listed above: * Perform the terms of the written agreement with skill and care, * Promote your best interests first and to negotiate for the best price and terms and * Maintain confidentiality of specific client information including motivation and bargaining position. A real estate agent who is working expressly on his/her buyer's behalf, representing that buyer-client and advocating for that client's interest first and foremost while maintaining the confidentiality of specific client information. More. When Should I Find a Bank or Mortgage Company? Many folks are more comfortable finding a source of financing for their new home prior to beginning their search, choosing to be "pre-approved". Others prefer to wait until they identify the home they wish to purchase. There are many different loan programs available, both "conventional" and "government", and many lending institutions which specialize in a variety of programs. The real estate agent you choose will be able to assist you in determining programs that may best suit your needs. Your agent will provide you with a selection of loan originators and lending institutions for you to interview and consult prior to making your decision. If you are uncertain about your price range, the agent you choose will probably advise that you have a prequalification meeting with a lender to provide you with direction prior to starting your search. The "secondary market" refers to international investors who purchase large blocks of loans. In other words, a block of loans from New England may be sold to a group of investors in California. There are regulations which are established to provide consistency in requirements for these loans. These regulations apply to both the purchaser and the property. Is It Important to Have a Home Inspection? A home inspection is very informative and a unique opportunity. I always recommend them. Each home has its own characteristics and qualities. Some may be considered problems by one buyer and not to another. Sellers are required to provide property disclosures of their home, but there may be issues developing that they know nothing about. Inspections usually take about 2-3 hours of time, and are valuable not only for diagnosing defects but also for the educational value you gain from learning about the home you wish to buy. It is important that you try to be present for them so any questions or concerns may be addressed first hand and on location. It is also good to learn what maintenance needs to be done to keep problems from developing in the home. Inspections done most frequently include (but are certainly not limited to): general building inspection (covers structure, electrical, plumbing, and basic heating systems), septic systems, wells, arsenic and radon (both air quality and water levels), pest, lead, water quality. A developing area of concern pertains to mold. There are inspections available for this, and you should consult with your home inspector regarding questions and concerns about mold. What is the Difference Between an Inspection and an Appraisal? A home inspection is usually not required by the financing institution, but an appraisal is. The home inspections are to discover/learn everything that you can about the home you wish to buy. The appraisal is done by a licensed appraiser, chosen by the lender, to verify the property value. How Do I Make an Offer After Finding the Right Property? The agent you select to represent you will complete the Maine Association of Realtors Purchase and Sale Agreement with you. This standard industry form contains contingencies for inspections, financing, title search, and allows for additional concerns/items that pertain to your purchase. The Property Disclosure which has been provided to you by the seller of the property needs to be initialed and signed by you, attached to the Purchase and Sale Agreement. In addition, the Lead Paint Disclosure needs to be completed, acknowledged, and signed by the seller(s), the real estate agent(s) involved in the transaction, and the purchaser(s). After the offer is presented to the seller(s) by their listing agent (or representative of that agent), the seller response will be communicated to you in a timely fashion. The negotiation process may be quick and easy, or may be more tedious and require more time. Your agent will work with you every step of the way to the point where you have a signed agreement on the property, or decide to turn away from this property. After I Find a Home to Buy, How Long Does it Take? Once you reach an agreement to purchase the home, typical financing takes between 30 and 60 days to "close" the transaction. During that time, the lender will be receiving documentation verifying information which you provide to them at the time of loan application. They will be gathering information pertaining to the property as well, such as the appraisal of value and the title documentation from the title attorney who does the title search. There may also be a "plot plan," which is completed by a surveyor for the purpose of verifying that there are no encumbrances on the property lines. (It is important to know that a plot plan is not a boundary survey, which is quite a bit more expensive.) | |
