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Buying/Selling in Utah
In Utah, real estate agents represent
the seller, the buyer, or both. Financing plays a key role, and so does your
REALTOR. I would be happy to send you additional info on any concerns you may have. |
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The Seller's
Agent
The sellers agent
takes a listing. Once the listing agreement is signed, the law imposes
a number of fiduciary duties on the seller's agent, the most important
one being this: the agent must protect and promote the best interest of
the seller. The interest of the seller must be placed above that of anyone
else. If the agent represents the seller, that agent is bound by law to
pass on to this client any confidential information you might give him.
The Seller's agent also negotiates everyone's pay upfront. When they take a listing at given percentage, say 7%, typically half of that goes to whoever represents the buyers. And the 3.5% that each agent receives, is then split with the brokerage.
A Buyer's Agent
A home buyer
is best to work with an agent who will represent you, the buyer, in
the transaction, even if the seller does not have an agent (ForSaleByOwner). In this case
the agent is legally bound to hold confidential any information
you do not want revealed to the seller, such as the highest price you are
willing to pay for the property.
This allows us to advise
you and assist you, without conflict of interest, in negotiations with
the seller on the price of the home. We, the agents, can perform other
services as well, such as offering property value reports on homes, find
financing sources for the mortgage on your home; research zoning requirements;
refer you to a title company, etc. We are compensated by the sellers to perform this task for you
(remember that you will be a seller someday, and have the same agreement). You now have an experienced professional
working for you with expert advice on financing options, community services,
churches, title companies, schools, transportation, as well as making sure
you get the best possible value in your purchase.
The Limited Agent
A limited agency
exists when an agent represents both the buyer and the seller in the same
transaction. Because the limited agent owes the same fiduciary duties to
both principals, the limited agent walks a legal razor's edge trying to
avoid situations where the agent may unintentionally compromise one principal
in favor of the other. I have completed several limited agent contracts where both parties are very pleased. After all, it's my
advertising dollars bringing buyers into the home.
In general, the limited agent
owes to each principal the duties of good faith, disclosure, loyalty, competence
and confidentiality. Many buyers and sellers don't seem to mind this scenario,
as long as they can negotiate a settlement on the property.
How Much Home Can You Afford
Buyers
should get "pre-approved" from a local lender to know what type of financing
and how much is available. We can recommend a local lender as our
properties do not usually conform to standards that your lender may be
accustomed to, and a poor lender can put your earnest money at risk.
The lender will have you make an actual loan application and pay for a
credit report to be run (about $50). "Debt to income ratios" will be used
to determine your buying power. Your future house payment should be around
28 - 30% of your monthly gross income. Your total monthly debt (mortgage,
car, credit cards, etc) should not be more than 36 - 40% of your gross
income. Once you locate a property in your lenders recommended price
range, you will also pay for an appraisal ($350). Bring the lenders "pre-qualification"
letter to us when looking for property, it strengthens your position when
negotiating on a property.
The House/Condo Hunt
Once you've decided how
much money you can and want to invest in a home or condo, it's time to
search out the property that is closest to your ideal place. Make a list
of what you must have (your "needs," things like how many bedrooms, a two-car
garage and three bathrooms). Then make a list of your "desires," the extras
like Hot Tub, views, ski access; fireplaces in both the living room and
the master bedroom; a downstairs office or a greenhouse, etc. This is the
perfect time to call us to assist you in the search for your dream home
or the closest thing to it.
We can set up your automated search for you right from ParkCityPropertySearch.com.
Finding the Right Place
Now is the time to discuss
freely with us what you like and don't like about the properties we are
taking you around to see. The more information we have about the kind of
property you want, the faster we can use the resources of our agency to
find the right home/condo for you. For instance, if you work 60-hour weeks,
perhaps you would like to locate a dream home near your office.
Do you want a home out in
the county or in the Park City mountains? Do you want a home bordering
a golf course so you can play a few holes before work everyday? Maybe you
would like ski run access and close to the bus route for visitors. All
this and more is possible. You just have to know what you want.
We can set up your automated search for you right from ParkCityPropertySearch.com.
Negotiating the Contract
Quite a lot goes into the
negotiating process with the home owner who is selling his home. Some of
these factors leading up to closing on a house include: price, financing,
terms, down payment, date of possession of the home, repairs to the home
and/or property desired; furnishings, appliances or equipment (like a complete
basement workout gym) and many other possibilities.
You may want to negotiate
a section of the contract that allows you to sell your present home before
you are obliged to begin payment on the new home. You should also write
into the agreement the period of time you need to complete professional
inspections and investigations of the property, such as title search, etc.,
before you are bound to buy the house.
Evaluating the Property
This evaluation can include:
a professional inspection of all the main systems (plumbing, electricity,
structure, etc.) of the home; inspections for lead based paint, asbestos,
radon, roof damage, septic tank, well tests, and many others depending
on age of the house and your concerns. A title company can help you resolve
any title issues that could become a problem in the future regarding the
properties past ownership. We can recommend professional inspectors, title
companies, etc. when you reach this stage in the buying process.
Financing
When you begin the property
search, find a lender to give you a ballpark purchase range. When you are
fairly sure that you've found the right place to call home, the financing
process can begin. There are many lenders and many kinds of mortgage loans
-- fixed rate mortgages still being the most popular. We can guide you
in understanding the kinds of loan options and in finding the lender who
suits your needs best. For a quick pre-qualification, use the mortgage
calculator.
Closing or Settlement
This is the stage when the
seller, the buyer, the agents, title companies, and escrow company for
both buyer and seller all sit down to finalize the purchase of the property.
We can prepare you for this event and all the details involved. Utah real
estate has specific contracts designed for your home purchase and eliminate
the expense of a real estate lawyer, but if you do wish to consult one
for sanity sake, Email me
and I will be happy to direct you to a qualified attorney.
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