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THE BUYING PROCESS

Your Dream Home Awaits - I'll See You There.

From property hunting and price negotiations to mortgage offers and legal paperwork, I’ll help you with everything involved in buying or renting a new property. Your dream home or office is waiting and I can’t wait to help you find it. Get in touch to find out how to get the process started. I’m looking forward to helping you on this exciting new journey.

The Contract

FAQ

I HAVE HEARD BUYERS HAVE TO PAY FOR THEIR OWN AGENTS NOW, IS  THAT RIGHT?
 

Sort of.  To be fair, as the party bringing the money in a transaction, buyers essentially paid the agents before as well.  The mechanics have changed a bit though. Prior to August 17th, 2024, the most typical arrangement for a transaction commission was that a seller agreed to pay their selling agent a certain amount, and the selling agent then advertised a buyer's commission out of that fee at a predetermined amount.  Which meant the commission term of any potential offer was basically pre-negotiated.

Since August 17th, 2024, a selling agent is not allowed to advertise on the MLS a commission to the buying agent.  So that term of the purchase agreement is able to be negotiated more easily now.  Buyers are also now required everywhere to sign a Buyer's Agency Agreement prior to engaging an agent and scheduling showings. 

The legal effect is that buyers are responsible for their agent's fees, and will sign a contract with them prior to their representation to that effect.  However, the practical effect has not altered the market signficantly.  The most typical arrangement still is that a seller will be willing to concede a concession to pay for the buyer agent.  Indeed, a buyer can make it a condition of the contract - however, they can also try to negotiate it.      


 

WHAT PERCENTAGE OF THE FINAL HOME SALE PRICE DO YOU CHARGE?

This is negotiable, but typically between 1.9% and 3.0% depending on the price of the search/home, but most commonly 2.6%.

DO I NEED A REAL ESTATE LAWYER AS WELL?

Luckily for you, I am a real estate lawyer.  But moreover, real estate lawyers are not required in Ohio to be a part of every transaction like they are in other states.  In Ohio we use Title Companies instead.

HOW LONG DOES IT TAKE TO BUY A HOME?

Under normal market conditions, the average time to complete the sale of a home (with a loan) is around 35-45 days. Though, well-prepared home buyers have been known to purchase properties faster than that.  Lender requirements, as well as mortgage regulation is the major driver of this delay.  Homes that are bought with cash can be a matter of days, if so desired and able.

HOW MUCH DO I NEED FOR A DOWN PAYMENT?

As little as 3%, and sometimes less.  First time homebuyers will often only put down 3 to 5% on a home. That’s because several first-time home buyer programs don’t require big down payments. A longtime favorite, the FHA loan, requires 3.5% down. What’s more, some programs allow down payment contributions from family members in the form of a gift.
Some programs require even less. VA loans and USDA loans can be made with zero down. However, these programs are more restrictive. VA loans are only made to former or current military service members. USDA loans are only available to low to-middle income buyers in USDA-eligible rural areas.
For many years, conventional loans required a 20% down payment. These types of loans were typically taken out by repeat buyers who could use equity from their existing home as a source of down payment funds. However, some newer conventional loan programs are available with 3% down if the borrower carries private mortgage insurance (PMI), which is an added monthly cost to your loan.

Got more questions? Get in touch today.

Get in Touch

(216) 235-1047

©2021 by Thomas Hodgkiss-Lilly, Esq., Realtor. Proudly created with Wix.com

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