Real Estate Tips

The Home Buying Process

1.   Brokerage/Agency Relationships  please see the definitions form of this packet.
2.   Financing Options and Pre-Approval for your loan
3.   Addressing money needed outside of closing ~ earnest money( varies depending on  seller $5000-10,000) ~ inspection ( $300-400.) appraisal ( $300-400.)  radon tests ($150)
4.   Selecting Neighborhoods and viewing potential homes
5.   Analyzing Value and Negotiating your contract
6.   Earnest Money Deposit ~ At the time a written offer is initiated, you will be required by the seller to include a personal check, cashiers check or cash in the amount specified by the listing agent and seller as a deposit towards the purchase. This money represents your intent to purchase the property.  It will be held in an escrow account either by the Title Company or the Listing Agent upon acceptance of the contract until the time of closing,  at which time it will be applied to your closing costs. If the sale of the property does not occur due to inspection issues, concerns with hoa requirements or final loan application issues then the amount will be returned to you. The sellers must be given written notice of any issues and sign an earnest money release prior to the refund. 
7.   Title Insurance  A title is how property is transferred from one owner to another. A Title Commitment will indicate the vested owner on record and any restrictions on the use of the subject property. When property is being sold or refinanced the lender and the buyer need a preliminary title commitment that will indicate exactly any recorded liens and encumbrances and recorded easements currently in effect on the property. The buyer  is required to furnish the lender with a lender’s policy showing the lender as a lien holder on that property. Title insurance is required on all Property in Colorado and is normally a seller’s cost. The charges will be incurred at the time of settlement as part of your closing costs. When the sale or loan of the property is final, the title company records the necessary documents and then will issue a title insurance policy to the new buyer and the lender showing clear title to the subject property.
8.     Home Inspection ~ The inspection deals with the mechanical aspects of a house and include review of appliances, water and plumbing lines, electrical, heating and ventilation, bath and kitchen fixtures, crawl spaces, basements, garages, roofs, attics, and the general maintenance of the home. These inspections typically range in cost based upon the size of the home but are usually between $300-$400. 
9.   Warranty Services ~A policy that reduces the expense of repairs or replacements of certain appliances, heating, plumbing or electrical items. typically between $300-$500
10. 10. Radon Test ~$125-$175 Radon is a radio active gas which occurs in nature from the earth. You cannot see, smell or taste it. Exposure increases the risk of developing lung cancer. If radon is found the seller typically remediates the concern by adding ventilation. This service should be specified when ordering your inspection.
11. 11.  Closing Procedures and closing costs  - must be paid with “good funds” in the form of a  cashiers check 
12. 12.  Possession