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Overview of the Buying & Selling Process
Buyer
1 Considers purchasing a home
2 Selects a real estate agent
3 Determines needs and wants
4 Discusses financial issues
5 Views & researches target homes
6 Makes an offer to buy
Seller
1 Decides to sell property
2 Selects a real estate agent
3 Determines needs
4 Prepares home for marketing
5 Agent markets the home
6 Accepts, rejects or counters offer
7 Offer Accepted
8 Loan Application
9 Inspections
10 Title Search
11 Appraisal
12 Loan Approval
13 Closing Papers Signed
14 Documents Recorded
15 Funds Available To Seller
16 Seller Moves Out
17 Buyer Moves In

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Benefits of Home Ownership

Credit:
Owning a home helps you establish financial credibility.

Independence:
Owning your own home provides you with independence and more privacy than renting. You are free to paint walls, plant flowers, keep pets and anything else within legal bounds.

Investment:
As you make more payments and own more of your home, you add to its investment value. Most improvements you make will also add to its value.

Pride:
A home reflects its owner's values and lifestyle. Owning a home can provide you with a source of pride, enjoyment and satisfaction.

Security:
A home can provide security against inflation because the value of your home increases as prices go up.

Stability:
Being established in a community provides a sense of belonging, stability and security.

Tax Advantages:
Interest on your mortgage loan is deductible on your yearly personal income tax return. Many of the closing costs associated with purchasing your home are deductible, as are your property taxes.

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Finding the Right Home

Real Estate Agents
As in any profession, not all agents are created equal. You can rest assured you will be in good hands when you meet with us to discuss your needs, type of area, style of home, amenities and everything you really want in your next home. We can assist you by providing access to ALL listings of ALL companies within the Connecticut and Rhode Island Statewide MLS services. Together, we can select the homes you would like to see, set appointments and preview homes in a short period of time. We will help guide you through the entire process.

Newspaper Ads/Internet
Many people go through the real estate classified section or browse the Internet to find a home that appeals to them. However, we sometimes learn of new listings that have not yet been placed in a print ad or the MLS. New listings come on the market daily.

Multiple Listing Service
We give you access to the multiple listing service. It usually includes the following details about homes and properties for sale:

  • Location
  • Price
  • Photograph(s)
  • Virtual Tour 
  • Utilities
  • Amenities
  • Annual property tax

When Previewing A Home
  • Write notes when previewing a home so you will be able to discuss the details later us.
  • Ask questions about the home and discuss any objections or concerns you may have.
  • Ask about the community - schools, shopping and transportation.
  • Ask specific questions about the construction of the home; electrical, plumbing, heating, cooling systems, etc.

Have Fun
Relax. Finding your new home can be a rewarding experience. Have a good time and enjoy the process.


Home Shopping Tips
Check For Properly Working Appliances/Fixtures:
  • Bathroom
    • Sinks
    • Showers/tubs
    • Toilets
    • Vent fan
    • Heat
  • Appliances
    • Dishwasher
    • Stove
    • Oven
    • Ice maker
    • Garbage disposal
    • Range hood
    • Refrigerator
    • Freezer
    • Microwave
    • Trash compactor
  • Kitchen
    • Kitchen cabinet doors
    • Drawers
    • Sinks
  • General
    • Lights (interior & exterior)
    • Windows
    • Heating system
    • Ceiling fans
    • Hot water system
    • Air conditioning system
    • Electrical outlets
    • Door bells
    • Doors
    • Water purifier
    • Fireplace damper
    • Garage door
Ensure House Is Well-Built & Systems Are In Working Condition:
  • Exterior
    • Brick bulging or cracking
    • Shingles missing or broken
    • Siding rotted or missing
    • Gutters damaged or need to be cleaned
    • Cracks in sidewalk/driveway
  • Basement
    • Water seepage in basement
    • Major cracks in foundation
    • Poor ventilation
  • Interior
    • Sub-flooring damaged or loose
    • Cracked walls or ceiling
    • Cracked tiles
    • Loose plaster
    • Flooring damaged
    • Soft, springy floors
    • Water stains near windows
    • Water stains on ceiling below bathroom
    • Water stains in attic

Home Inspections

What is an inspection?
There are numerous types of inspections. An inspection is meant to evaluate, at minimum, the structural and mechanical condition of a property. It is not the same as an appraisal which evaluates the market value of a property. Persons involved in real estate transactions need unbiased information about the physical condition of property they plan to buy or sell and your contract should include provisions for performing various inspections. We will explain the types of inspections available.

Finding a qualified Inspector

  • Referrals from satisfied customers
  • Referral from a local real estate agent or mortgage company
  • Local consumer affairs office and/or state licensing authority
  • Yellow Pages under "Building Inspection Services"

Ask the inspection company representative if they "stand behind" their opinion in the event they rate something as satisfactory but make an honest mistake. After all they are human like the rest of us. Some companies have an insurance policy to provide for repairs in such an event.

What the inspections may evaluate based upon the terms of your Purchase Agreement with the Seller

  • Foundations
  • Plumbing and electrical systems
  • Doors
  • Ceiling, walls and floors
  • Roof
  • Hazardous materials concerns
  • Heating and air conditioning systems
  • Wood destroying insects and organisms
  • Well water quality and/or quantity
  • Septic
  • Insulation
  • Ventilation

Answers to Frequently Asked Questions

What is the difference between "pre-qualified" and "pre-approved"?
If you are "pre-qualified" you have determined, with a loan officer, what price you can afford based on the down payment, your debts and the amount the mortgage company will approve for your mortgage. Being "pre-qualified" is only a determination of your probable credit. If you are "pre-approved", your credit, employment and funds have been approved by the lender. The latter is much more desirable in the eyes of a person who is considering your offer on their home.

What are closing costs?
Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For buyers, they are usually about 4-6% of the total sales price of a property. Some of the closing costs you might encounter are: application fees, appraisal fee, property taxes, credit report, discount points, documentation fee, escrow fees, homeowners' association fees, loan fees, mortgage insurance, origination fees, tax registration and title insurance premium.

What is a point?
One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. By charging "points", the lender can bring the real estate loan up to those other investments.

What is earnest money?
When you make an offer, you will need to put up an earnest money deposit as a sign of good faith that you are seriously interested in buying a home. That deposit becomes a part of the purchase price and is held in a trust account upon Seller acceptance of your offer. Your deposit is then credited to you at the time of closing. In the event the transaction does not continue to closing then the return of the deposit is based upon the terms of the Purchase Agreement and if any of its conditions being broken. Typically, the amount is negotiated between you and the Seller when the initial offer is made. Generally speaking you want to put down as little as possible, while still showing you are serious about the purchase. The Seller wants you to put down as much as possible without it being an unreasonable amount, to prove you are serious. The range of deposits is usually 1% - 5% of the purchase price.

What is title insurance?
Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy. For instance, in the case of a forged deed 20 years ago, how would the attorney ever know such a thing? Admittedly, such a situation is exceedingly rare. However, if it happens to you it tends to ruin your day! At the time of closing you will be charged for a title policy to protect the mortgage lender. The closing attorney will then offer you an "owners" policy, which is optional. Considering what is at risk and that the premium is so little, some people would consider it a "no brainer" and very foolish to decline. Lastly, title insurance premium is only paid once and stays in effect for as long as you own the property.

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